Dalal Street

With the change in Guard at North Block earlier this month, Analysts from DalalStreet met a range of people across Ministries, the Planning Commission, the Council of Economic Advisors to the Prime Minister, policy analysts and seasoned political journalists seeking views of the Indian Economy and Business. Everybody acknowledged there is urgency of the situation, and in particular the fear of a credit rating downgrade is a strong
compulsion to act.

The overall tone was cautious, perhaps best summarized by a remark from one senior adviser that “there is now a clear intent on the part of government. But will it lead to outcomes?” One of the Joint-Secretary said “issue, what issue”, plugging the line “the world makes India look good…foreign institutions have invested $10.5bn already this year”.

Key Takeaways from the meeting, (more…)

PM Dr. Singh has said that he will continue as the Finance Minister beyond the Monsoon Session of the parliament and has entrusted the job of answering questions to MoS. Dr Singh’s first term as Finance Minister in 1991-96 resulted in liberalization and far-reaching changes. Pranab Mukherjee demited from the office with a Historically Weak Indian Rupee, High Inflation, Weak GDP Growth, Amending Laws With Retrospective effect, etc Let us check the health of Indian Economy and take a prudent view on to what extent Dr. Singh can turnaround the Indian Economy, which has to happen now or will never happen.

India’s 4QFY12 GDP came in at 5.3% YoY – the lowest (more…)

You may heave heard in the news, read here about empty promises coming from the office of octogenarian Finance Minister Mr. Mukherjee curtailing Inflation. Rubbing salt on the woulds of Common Man’s concern on inflation is yet another rubber stamp kind of an authority, Dr Subbarrao, Governor of RBI. Both of them have neither been able to handle the inflation, rupee, GDP growth, etc nor frame any far reaching policy measures. Data suggests that in the last 12 months the average WPI / Inflation has been at a whopping 8.3%. Latest number for May-12 being 7.5% [YoY Growth]

Indian Inflation in the past 12 Months is Higher than the GDP Growth(recorded at 5.3% latest quarter on yearly basis). (more…)