After the March 2012 IIP data of a contraction in Industrial output as big as 3.5%, I feel the blog’s readers again felt a need for a change in the blog’s direction, though without the use of interactiv features by the audience, it remains a largely directive effort on which way the world and India’s position in the same is headed and that has not changed at all. Also wit remains germaine that public news networks especially Tv continue to show a shallow knowledge and lack of interest in arguable still Asia’s #2 growth Economy. The current derating of India’s growth forecasts to our 2008 argument of return to the Hindu rate of growth seems a point to anchor.
Also moot is the fact of my being busy with trading across markets and thus Economic and trend commentary becoming specific to more stock and other asset classes as to their performance in the markets and their probably since bludgeoning the IIP data’s sanctity I have been lazy in updating the data items that keep flowing including the new reports on hidden money and the old reports on inflation and IIP as the phenomenal price hike at retail covers ground on India’s real fuel billa nd its payment thereof. A nice infographic in The Economic Times shows the price in rupees for India’s Fuel basket still costlier than at the time of the Crude’s peak because of the negative gains on the Rupee since, itself caused by the fuel bill deficit or the Current Deficit as we know it.
However, with reform on the backburner, more such snide actions by this government and the next will be the only options for the Indian engine to chug along. today’s RBI intervention for example in the FX markets reaped a perfect dividend ont he back of the day to break the Euro globally yesterday and the dollar’s weakness today on the Dollar indices Of course the Dollar index is hardly determined by a lesser currency like the Rupee int he Global FX markets and we can easily keep the gains ont he intervention and the local markets in the Rupee even as US markets pre open send the USD back to 82 with no one wanting to lose this Reserve currencyin the Pacific or European markets and China remains pegged to the currency as well
The way forward is yet simple. The understanding of th e undercurrents in making reform happen, and timing stories so more of you can appreciate the value of India inthe global economy. my global ites meanwwhile also need a pinch of writing pixie dust to put on ‘paper’ that what we are showcasing and dong in banking, Global retail lifestyle champions and others who ave the next two decades right. Obviously that means the thought process and the interaction must continue.