This volume of the EcoCapsule looks hopefully at the improvement in US-China relations and believes that some of the impeding threat of downturn may have been nipped in the bud due to it. At the same time uncertainty remains high, and global policymakers must have their eyes open. This is also translating into commodity price volatility, with wide dispersion amongst goods within the basket. Notably, gone are the days when gold was just an inflation hedge. Central Banks are stocking up on the yellow metal as an alternate asset. Meanwhile, in India, the festival of lights shooed away the global doom. Consumption was resplendent, with vehicle sales and UPI transactions touching new highs. This has also spurred a revival in bank credit, which could be durable. Finally, the external sector, which acts as a buffer between India and the world, remains comfortable but monitorable.
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