Today's dollar rate in INR is 55.37, Petrol rate in Bangalore is 81.75, our Economic conditions are going worse than ever, Increasing rate of unemployment , Corruption all over India , why India is depending more percentage on SERVICE industries ? what the hell our R & D department doing.. ! where are our investors.. !!! Depending on service industries may get boost in Indian economy but not for long time.. this is the situation where we are facing right now.
Providing services to the world brings employment but not for a sustainable growth in Economy. Today china is acting as a 70% supplier to the entire world... even Americans are asking dollars from Chinese ..
Providing services to the world brings employment but not for a sustainable growth in Economy. Today china is acting as a 70% supplier to the entire world... even Americans are asking dollars from Chinese ..
If it goes on with our ruling corrupted politicians .. i don't think our future generation will get better advancement.
THESE ARE THE TOP REASONS WHY OUR INDIAN ECONOMIC GROWTH MAY SLOW DOWN
High Inflation – Enough to keep Growth on check!
Inflation has shot up to 8.43% in December as against 7.48% in November. Food inflation remains stubbornly high at 16.91%. Needless to say, markets have already felt jitters based on concerns emanating from this prime culprit.
Slow Reform Movement – Stalling Growth Prospects!
The scandal debate has paralyzed the Parliamentary proceedings adding another thousand of crores to tax-payer’s wealth erosion. The winter session of Parliament has already dumped into drains; and now even the Budget session, which begins on February 21, stands the risk of being abandoned.
Earnings Slowdown – Impacted by higher Operating costs!
The commodity cycle has yet again turned bullish. Manufacturing companies are more susceptible to such impact of rising raw material prices. The tremors of the same shall be felt in next few quarterly performances
Current Account Deficit – Signs of Growing Concern!
High current account deficit could seem even more inflated in a likelihood of a reversal in foreign capital flows covering it.
Industrial Growth – A bit too volatile to Digest!
FM Pranab Mukherjee has gone on record saying high inflation and weak IIP data were cause of concern and that the government was examining ways to shore up industrial production.
Rising Interest Rates – Renders Working Conditions Costly!
RBI raised repo (6.5%) and reverse repo rates (5.5%) by 25 bps in a bid to tame inflation. Moreover, bankers believe another 50 bps hike could well be in the offing soon. So, will these measures actually tame inflation or choke the growth rate?
Fiscal Deficit – The Unbudgeted woes!
One-time revenue spinners such as spectrum auctions and disinvestment proceeds – which accumulated nearly Rs.1.5 lakh crore this fiscal – won’t turn up next year. However, as higher daily wage payments and new entitlements to right to food, chips into the system, the targeted deficit of 4.8% would be tough to contain with
FII Selling – Moving back to the West!
If the FII inflow dries up, it could pose a significant risk of Balance of Payment position of India internationally.
Global woes – India still not decoupled yet
Neither India, nor China has ever decoupled from global markets. With increasingly globalization, no country can avoid negative impact of trade and business with overseas partners.
Unforeseen Events – The Nature’s Fury!
The global warming is the biggest issue for the environmentalists today
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