Brent crude has dipped again and that portends a stasis in global economy. Added to this is the end to Quantitative Easing in US and simultaneous fresh stimulus in Europe and Japan has created an unsteady monetary regime which creates disproportionate FI flows to our economy. These largely,go into Indian stocks that are notoriously over valued and not to enabling infrastruture projects that are needed to complement efforts at growth.. In the absence of tangible and forceful reforms /policies over a gamut of enablers : power,land acquisition ,labour ,skill upgrade , companies are loathe to expand capacity. As a result these speculative inflows , besides spurring inflation ,produce neither growth nor additional jobs.. Capital investments must be encouraged as never before and good governance is relevant here.We have a stable government now with a clear task ahead.There is a small window now,with lower fuel prices and
falling global prices of farm produce ,that would keep inflation in check for a while. The next few months must trigger a spate of reform initiatives and necessarily lower key rates. We may not get such a scenario ,later.
Economic Times Nov 6
Financial Express Nov6
falling global prices of farm produce ,that would keep inflation in check for a while. The next few months must trigger a spate of reform initiatives and necessarily lower key rates. We may not get such a scenario ,later.
Economic Times Nov 6
Financial Express Nov6
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