The economy and company bottom lines aren't a complete
washout - excellent monsoons have set the stage for bumper harvests in October
and that, in turn, will lead to higher rural incomes and spending. India Inc
majors are saying it is rural India - home to roughly 700 million people - to
the rescue as urban India feels too gloomy to spend more
Reason for Cheer are due to ,
Monsoon Rain is Above Normal in Most Part of Country.
Farm growth increased by over 8 % as compared to last year.
Worst may be over for the Indian rupee.
Reasons to worry are because,
India's economic troubles may worsen after rating agency
Fitch warned the country of a downgrade citing growing external imbalances and
the difficulties in funding it due to reversal of global portfolio capita.
In a statement on Thursday, Fitch, the smallest of the big
three firms, said that India and Indonesia risk negative rating action if
confidence slips further. It is the first rating agency to issue such a warning
after the turmoil in emerging market currencies made the rupee Asia's worst
performing currency this year.
Well-known global investors such as Mark Mobius and Marc
Faber have already said that a rating downgrade of India is a possibility if
the government does not take steps to restore investor confidence.
I think rural India will take it out of woods.
Do you agree or not ?
Well-known global investors such as Mark Mobius and Marc Faber have already said that a rating downgrade of India is a possibility if the government does not take steps to restore investor confidence.
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