Junk Rating Looms for India

[Jungibaaz]

6 reasons why economy will strengthen from now onwards:-

#1 The country has had above normal monsoons this year and this could heighten economic activity in the second half of the year as good crops lead to higher consumption amongst half of India’s population.

#2 The run up to 2014 general elections leads to higher spending from official and non official sources and this leads to increased economic activity.

#3 Eurozone economy is showing signs of coming out of a recession with manufacturing showing uptick over the last two months and GDP growth coming in positive for the second quarter of 2013. Eurozone coming out of recession is good for global trade and its effects will be felt on India’s exports going forward.

#4 US economy is showing strength with unemployment rate down to multi year lows and equity indices at close to record highs. Strength in the world’s largest economy will filter down to India.

#5 China’s economy is showing signs of bottoming out with growth stabilizing at around 7.5% levels, exports picking up for the last couple of months and domestic consumption showing strength. Stability is the second largest economy in the world leads to improved economic activity across the globe.

#6 Despite the Fed indicating withdrawal of additional stimulus through bond purchases, interest rates in the US, Eurozone and many other parts of the world will stay at record low levels for a while to come. Risk aversion by global investors based on prospects of higher rates will die down and flows will resume into countries like India that faced the brunt of FII selling in the May- August 2013 period.

All very valid points you've raised.

But these point were never the cause of this rather large slowdown, this may go some way in starting a recovery process. But if the above list is all there is to know, expect a creeping recovery, the boom wont be in sight so soon.

 

[cirr]

Anyone who buys Indian debts needs to have his head examined。

Trashy country，trashy bonds。

 

[Vinod2070]

Trashy zombies that came out straight from running after the birds, banging their pans, pots and drums.

All because another idiot zombi asked them to run in their hundreds of millions after the birds.

What a "high IQ" zombi trash society!

And these zombis want to talk about others!

 

[BigMark]

Anyone who buys Indian debts needs to have his head examined。Trashy country，trashy bonds。

International people who visit india, they see poor people, beggars, homeless people everywhere in India.

Indians must take good care of poor people in india.

International people have the biggest problem in the world (Barack Obama).