SUMMARY
India continues to face tough & rather uncertain
economic conditions. With poor monsoon, policy paralysis &
non-encouraging quarterly results ( with increase in topline in most cases, but
with falling margins), the business sentiment is reported to be much worse than
reality. The two powergrid collapses in quick succession last week added
fuel to the fire, severely affecting the perception of India’s investment attractiveness.
With concerns over inflation & risks thanks
to deficient rainfall, high food prices, weaker rupee, suppressed inflation in
fuel, coal & electricity, there has been downward revisions in the growth
projections.With stagnating global equity markets, the investment scenario also
likely to continue to be adverse. However, with change in guards at critical
positions (with new finance minister & chief economic advisor taking
positions), one can look ahead with a note of optimism
It is reported that (THE
ECONOMIS July 21,2012) that the big emerging economies may never grow as fast
as they did after 2003. As per the projections of Goldman Sachs, the average
growth for the rest of the decade for BRICS would be 5.2% for Brazil, 5.4% for
Russia, 6.3% for India & 6.9% for China, with India China being in a
position to dream to fulfill this & Brazil & Russia likely to fall
short.
