Fuel Price Hike, Record High Inflation, Low Market Sentiment - Bumpy Road Ahead For India Inc.
Sorry for not being able to write for so long! But it is not easy managing three things at the same time - teaching, learning and maintaining 5 blogs. At the same time - looking after family ( my parents went to UK and will stay there for 6 months). In the meantime I have to do all marketing, grocery - and so and so which were being done by my retired father for all these days! Anyway, here I go - back again to hone and share my business knowledge. It has not been particularly good time on business and economic front in India. Inflation is at seven years high and is pegged at 8.75 percent. Experts are of the opinion that the government has lost control on the basic mechanisms to check inflation. Despite several measures including raising interest rates, there is no sign that the inflation will come down. Food prices, daily necessary commodities are at all time high price. Prices of mechanical and industrial products are rising daily. On top of it, the government had to raise fuel prices at India record of $1.25 per litre (petrol). Due to rise in interest rates, there is liquidity crunch in the financial sector and stock market is ever weakening after a sustained period of robust growth. The Rupee has also weakened by almost 5 percent against all major international currencies including the US Greebuck and Euro. The condition has worsened so much so that the government has recently levied more taxes on higher end sedans and SUVs in order to discourage fuel guzzlers on the road. Only positive sign that I can see is the ever burgeoning number of Forex reserves that stands at $315 billion. So long for today