Rupee breaches 74

[BeerBob123]

[snoww]

2 minutes ago, Android_Halwa said:

To out some numbers together, forex reserves at $400 billion, Good at $20 billion, access to credit of $600 billion. 

This is the size....we have enough forex reserves to deal with such things, price rise is temporary. 

I was also expecting interest rate hike and arresting liquidity and spending by RBI but it did not happen, surprising though...either a foolish move or calculated one.

Probably Both. 

Elections time , So probably government doesn't want to raise interest rates.  

[chilakottudu]

2 minutes ago, Android_Halwa said:

To out some numbers together, forex reserves at $400 billion, Good at $20 billion, access to credit of $600 billion. 

This is the size....we have enough forex reserves to deal with such things, price rise is temporary. 

I was also expecting interest rate hike and arresting liquidity and spending by RBI but it did not happen, surprising though...either a foolish move or calculated one.

Forex reserves beyond certain level is no use for us, good thing is india has very low external debt levels when compare to lot of developed nations.

[Android_Halwa]

2 minutes ago, chilakottudu said:

Forex reserves beyond certain level is no use for us, good thing is india has very low external debt levels when compare to lot of developed nations.

Forex reserves are actually very important for now...India is pledging these resources for better rate deals with IMF...probably India is the only country now which has more access to funds from IMF than any nation on earth. It’s partly because of these reserves. 

 

[Android_Halwa]

4 minutes ago, snoww said:

Probably Both. 

Elections time , So probably government doesn't want to raise interest rates.  

Also, one needs to keep in mind the political situation too.

Elections in 5 states, about 35% of the population going to vote. One can expect direct public spending at 2-3000 crores..and indirect spending at 20,000 vlcrores. All that cash stashed will be coming into the market..more liquid, more spending and surge, ...

[snoww]

2 minutes ago, Android_Halwa said:

Also, one needs to keep in mind the political situation too.

Elections in 5 states, about 35% of the population going to vote. One can expect direct public spending at 2-3000 crores..and indirect spending at 20,000 vlcrores. All that cash stashed will be coming into the market..more liquid, more spending and surge, ...

True. Inflation will go out of hand in next one year. 

[AlaElaAlaEla]

2 minutes ago, snoww said:

True. Inflation will go out of hand in next one year. 

how do you all these ??

[Android_Halwa]

1 minute ago, snoww said:

True. Inflation will go out of hand in next one year. 

This year, from November to May, we can expect another 50,000 crores of stashed amount to come into public circulation. 

Drastic increase in purchase power, rural spending aithe kotha records kodtadi, rural consumption of goods ki aithe oka tiruguvundadu

inflation matram sankanakipotadi....5-8% variation vunna no surprise. 

But intha ayinaka, next vache government stable ga lekapothey iga ayinatte mana pani... 1996-1998 political instability will repeat. 

[snoww]

Just now, Android_Halwa said:

This year, from November to May, we can expect another 50,000 crores of stashed amount to come into public circulation. 

Drastic increase in purchase power, rural spending aithe kotha records kodtadi, rural consumption of goods ki aithe oka tiruguvundadu

inflation matram sankanakipotadi....5-8% variation vunna no surprise. 

But intha ayinaka, next vache government stable ga lekapothey iga ayinatte mana pani... 1996-1998 political instability will repeat. 

My prediction is regional parties coalition will form a government with help of congress. Which will mostly lead to political instability. I don't see hopeful economic future for India. Hopefully I am wrong. 

[AlaElaAlaEla]

1 hour ago, snoww said:

not too much of a bright side. service sector only benefit few.

petrol prices and inflation affects everyone. 

 

1 hour ago, AlaElaAlaEla said:

how do you know all these? 

 

1 hour ago, xano917 said:

He did his economist course after rupee crossed 74 . Calling all economists to give free advices / predictions 

calling all economists

[McD_Murthy_02]

good time to send india or wait?

[panipoori]

2 minutes ago, AlaElaAlaEla said:

 

 

calling all economists

jai urjit patel!! jai NAMO!!!

[AlaElaAlaEla]

Just now, McD_Murthy_02 said:

good time to send india or wait?

ask economists 

[Android_Halwa]

6 minutes ago, snoww said:

My prediction is regional parties coalition will form a government with help of congress. Which will mostly lead to political instability. I don't see hopeful economic future for India. Hopefully I am wrong. 

We had good political and economic stability for the last 20 years. Starting 1998, stable governments with good demand and growth forecast. 

I think we had way too much of it...time for a correction, shake up in the system, adding bit of political instability may force things to take the right path...

i fear for such thing to happen which will hamper growth...but at the same time, we would need a correction to keep it going for another two decades..

[chilakottudu]

31 minutes ago, Android_Halwa said:

We had good political and economic stability for the last 20 years. Starting 1998, stable governments with good demand and growth forecast. 

I think we had way too much of it...time for a correction, shake up in the system, adding bit of political instability may force things to take the right path...

i fear for such thing to happen which will hamper growth...but at the same time, we would need a correction to keep it going for another two decades..

There is significant diff between 1998 and now, 1998 we don't have strong states kani ippudu unnai though central govt instability unna pedda farak padadu and most of the companies they need India