Get your dog a sombrero
Sunday, 21 July 2013
Wednesday, 31 October 2012
THIRD LARGEST ECONOMY IN THE WORLD
INDIA IS THE 3rd
largest economy in the world.
World bank published a
data. In that data India become 3rd largest economy country in the
world.
America(U.S)in
the first place, China in the second place
India’s economy is 40 per cent bigger than Germany’s and it is roughly double the size of France and the UK.
India is growing its economy it’s GDP rise, on average, by around 7 per cent per annum for the next decade or two. An economic powerhouse already, it will increase its influence in the global economy and, in time, financial markets as it further develops.
The Reserve Bank of India decision to ease monetary policy via a 25 basis point cut in the cash reserve ratio to 4.25 per cent was made with the express intention of supporting liquidity and bank lending.
The policy easing is driven by the rapid slowing in GDP growth. Over the past year, annual GDP growth has fallen from a peak of 9.2 per cent to 5.5 per cent. This slower baseline saw the Reserve Bank of India cut its GDP growth forecast for 2012-13 from 6.5 per cent to 5.8 per cent a pace that is widely judged to be below trend.
Perhaps most disconcerting for those looking for further policy easing, the Reserve Bank of India highlighted its resolve to contain inflation by noting that “the persistence of inflation pressures, even as growth has moderated, remains a key challenge. Of particular concern is the stickiness of core inflation, mainly on account of supply constraints and the cost-push of rupee depreciation.” While the RBI has an easing bias, aggressive interest rate cuts are unlikely.
Some of the RBI inflation concerns have been driven by the weakness in the rupee, which has fallen by around 20 per cent against the US dollar since the middle of 2011. International investor and credit rating agencies are wary of a persistently wide budget deficit and an on-going current account deficit.
Persistent “twin deficits” run the risk of driving India’s credit rating to below investment grade status.
Both Standard & Poors and Fitch have highlighted the risk of a sovereign downgrade unless there is near-term progress in narrowing both the fiscal and trade deficits.
This is where the policy pressures are paramount. The negative credit rating outlook risks further rupee weakness and with that, upward pressure on inflation. The recent fiscal initiative to reduce the budget deficit from above 5 per cent of GDP at present to around 3 per cent of GDP in 2017 may be too little and too slow. In the interim, the economy has slowed appreciably and the Reserve Bank of India is clearly reluctant to ease monetary policy too quickly for fear of seeing the rupee weaken further.
India is rapidly gaining an elevated status, being Australia’s fourth
largest export market with coal, gold, education-related services and copper
the main export items. Indian direct investment into Australia was just under
$11 billion in 2011, dwarfing Australian investment into India which was $4.3
billion. India’s economy is 40 per cent bigger than Germany’s and it is roughly double the size of France and the UK.
India is growing its economy it’s GDP rise, on average, by around 7 per cent per annum for the next decade or two. An economic powerhouse already, it will increase its influence in the global economy and, in time, financial markets as it further develops.
The Reserve Bank of India decision to ease monetary policy via a 25 basis point cut in the cash reserve ratio to 4.25 per cent was made with the express intention of supporting liquidity and bank lending.
The policy easing is driven by the rapid slowing in GDP growth. Over the past year, annual GDP growth has fallen from a peak of 9.2 per cent to 5.5 per cent. This slower baseline saw the Reserve Bank of India cut its GDP growth forecast for 2012-13 from 6.5 per cent to 5.8 per cent a pace that is widely judged to be below trend.
Perhaps most disconcerting for those looking for further policy easing, the Reserve Bank of India highlighted its resolve to contain inflation by noting that “the persistence of inflation pressures, even as growth has moderated, remains a key challenge. Of particular concern is the stickiness of core inflation, mainly on account of supply constraints and the cost-push of rupee depreciation.” While the RBI has an easing bias, aggressive interest rate cuts are unlikely.
Some of the RBI inflation concerns have been driven by the weakness in the rupee, which has fallen by around 20 per cent against the US dollar since the middle of 2011. International investor and credit rating agencies are wary of a persistently wide budget deficit and an on-going current account deficit.
Persistent “twin deficits” run the risk of driving India’s credit rating to below investment grade status.
Both Standard & Poors and Fitch have highlighted the risk of a sovereign downgrade unless there is near-term progress in narrowing both the fiscal and trade deficits.
This is where the policy pressures are paramount. The negative credit rating outlook risks further rupee weakness and with that, upward pressure on inflation. The recent fiscal initiative to reduce the budget deficit from above 5 per cent of GDP at present to around 3 per cent of GDP in 2017 may be too little and too slow. In the interim, the economy has slowed appreciably and the Reserve Bank of India is clearly reluctant to ease monetary policy too quickly for fear of seeing the rupee weaken further.
Sunday, 21 October 2012
WORLD LARGEST TELECOM OPERATER
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