Current Issue ...

My take on current issue ...

There are persistent issues within & outside system. We have Political pressure, Curr Acct Def sword hanging, reforms not picking up, inflation not coming down & interest rates not yielding desired results. To add to this we have Europe credit issue, US debt issue & overall slowing global economy. We cant ignore what has happened in Cyprus as acc to me its a precursor to things coming. Spain might... be the next to crack. In US there is a clear debt bubble & if that breaks the flight of money away from emerging markets will add to rupee depreciation & gold buying pressurising CAD yet again.

What do we need??? Ministry clearing right projects, kickstarting stalled projects and higher dependence on India growth. While foreign inflows might help us contain CAD for the time being, we need competitive export policies to really plus the hole.

lets hope for some hope ...