Air pollution threat, FDI outlook, CPI data

Air quality levels in India have been the worst on record in recent weeks and the country's reliance on coal suggests that this will remain an economic headwind for a long time to come. That doesn't seem to be deterring multinationals from announcing plans to invest in the country though; there has been a flurry of announcements over recent weeks, supporting our view that the drop in net FDI inflows will reverse. 

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