FXStreet reports that the nascent improvement in some demand and manufacturing indicators is increasingly being threatened by the COVID-19 outbreak. Analysts at ANZ Research details the next steps India must take. USD/INR trades at 74.218.

"With financial stress added in the mix, India faces a scenario of prolonged lower growth."

"Given the heightened risks of a sharp global slowdown, fiscal and monetary accommodation needs to be stepped up."

"We expect the Reserve Bank of India (RBI) to be at the forefront of fighting this slowdown with a 50bp reduction in the policy repo rate on or before their 3 April meeting."

"Inflation is unlikely to be a consideration in this environment."