Upload File

greece crisis is not a major worry....firstpost

3
Greece crisis is not a major worry now but it reminds India story should be domesticdriven by Jun 30, 2015 #Economic growth #exports #greek debt crisis #Make In India #Raghuram Rajan #Rupee Email Print Share 0 Comments Most economists expect that there isn't any immediate concern for India on account of current developments in Greece, where that country is on the verge of defaulting to global creditors, but warn contagion of the crisis to rest of the European region could eventually force a defensive play on policymakers in emerging economies. To be sure, compared with previous crisis periods, India is much better positioned to face any global unrest. The country has foreign exchange reserves of $355 billion (compared with $252 billion in 2008 09 period), relatively stable currency and improved fundamentals. Economists such as Crisil's D K Joshi say what is critical is uneven global recovery and Greece in particular should act as a reminder to the NDA government that India's economic recovery should largely depend on domestic, not external, drivers. ] Reuters “Greece isn't a major worry at this stage, but a source of volatility. If the global demand further takes a major hit on account of this, Indian exports can further slowdown. The better way of handling this situation is not to delay the public investment spending push and build a strong, domesticdriven story,” Joshi said. Share

Upload: mario-santos

Post on 13-Sep-2015

219 views

Category:

Documents


4 download

Report

DESCRIPTION

Greece Crisis is Not a Major Worry....Firstpost

TRANSCRIPT

  • 7/1/2015 Print:GreececrisisisnotamajorworrynowbutitremindsIndiastoryshouldbedomesticdriven

    http://www.firstpost.com/printpage.php?idno=2317254&sr_no=0 1/3

    GreececrisisisnotamajorworrynowbutitremindsIndiastoryshouldbedomesticdriven

    byJun30,2015

    #Economicgrowth#exports#greekdebtcrisis#MakeInIndia#RaghuramRajan#Rupee

    EmailPrint

    Share 0 Comments

    Mosteconomistsexpectthatthereisn'tanyimmediateconcernforIndiaonaccountofcurrentdevelopmentsinGreece,wherethatcountryisonthevergeofdefaultingtoglobalcreditors,butwarncontagionofthecrisistorestoftheEuropeanregioncouldeventuallyforceadefensiveplayonpolicymakersinemergingeconomies.

    Tobesure,comparedwithpreviouscrisisperiods,Indiaismuchbetterpositionedtofaceanyglobalunrest.Thecountryhasforeignexchangereservesof$355billion(comparedwith$252billionin200809period),relativelystablecurrencyandimprovedfundamentals.EconomistssuchasCrisil'sDKJoshisaywhatiscriticalisunevenglobalrecoveryandGreeceinparticularshouldactasaremindertotheNDAgovernmentthatIndia'seconomicrecoveryshouldlargelydependondomestic,notexternal,drivers.

    ] ReutersGreeceisn'tamajorworryatthisstage,butasourceofvolatility.Iftheglobaldemandfurthertakesamajorhitonaccountofthis,Indianexportscanfurtherslowdown.Thebetterwayofhandlingthissituationisnottodelaythepublicinvestmentspendingpushandbuildastrong,domesticdrivenstory,Joshisaid.

    Share

  • 7/1/2015 Print:GreececrisisisnotamajorworrynowbutitremindsIndiastoryshouldbedomesticdriven

    http://www.firstpost.com/printpage.php?idno=2317254&sr_no=0 2/3

    (Meanwhile,financesecretaryRajivMehrishihassaidthefinancialcrisisinGreecemayhaveanindirectimpactonIndiaandthegovernmentisintouchwiththeRBItodealwiththesituation,Reutersreported.)

    Indiahasalreadytakenahitontheexportfront.InMay,thecountry'sexportscontractedforthesixthmonthinarow,whentheyplunged20.19percentto$22.34billion.Thefallhasbeenmainlyduetoglobalslowdownandafallincrudeoilprices.PossiblecontagionofGreececrisistoothermarkets,canworsenthescenario.TheFederationofIndianExportsOrganisations,anindustrybodyofexporters,hasalreadywarnedoffurtherexportslowdownlookingatthecurrentorderbookposition.

    SuchascenariocouldalsoleadtoreallocationofresourcestoemergingmarketsfromEuropeanregion,whichwouldmeancountrieslikeIndiawouldwitnesslargescalecapitalinflowsimpactingtheexchangerate,saidMadanSabnabvis,chiefeconomistatCare.TheRupeehasalreadybeenhighlyvolatilethisyear.Sincethebeginningofthisyear,therupeehaslost1.32percentbuthasgained7.12percentfromitsalltimelowof68.80on28August2013.

    Sofarthisyear,foreigninstitutionalinvestorshavebought$12.82billionfromlocalequitymarkets.OnMonday,therupeeopenedat63.74againstthedollar,down10paisefromFriday'sclose,andiscurrentlytradingat63.90.ThecurrencyhaslargelytradedsteadythisyearbuttheRBIgovernorhascautionedthatitstillfacesthedangeroffallingsharplyduetoexternalfactors.

    Also,possiblespreadingofthecrisisinGreecetoGermanorotherEuropeanbankscouldupsettheRBI'sassessmentsoninflation.Inthe2Junemonetarypolicy,theRBIhassaidthatitiskeepingaclosewatchontheglobalmarkets.Volatilityinglobalbondmarketshasincreasedwithanumberoffactorsatplay:unwindingofEuropeanassetsbyinvestorsduetotheGreekcrisisrapidlychangingexpectationsaroundtheFed'sforwardguidancesharpmovementsincrudepricesandmarketcorrectionsduetochangesinrisktolerance,theRBIhadsaid.

    Infact,theRBIhasbeenguidingthegovernmentthatIndianeedstopinitshopesondomesticdemandforgrowthrecovery,ratherthananexportdrivengrowth.IntheJunepolicytoo,theRBIhasspokeaboutthisinthecontextoffallingexports.Netexportsare,therefore,unlikelytocontributeasmuchtogrowthgoingforwardastheydidinthepastfinancialyear.Consequentlygrowthwilldependmoreonastrengtheningofdomesticfinaldemand,RBIsaid.

    Inthepast,RBIgovernor,RaghuramRajanhasattractedcriticismonquestioningthepremisesofNDAgovernment'sMakeinIndiacampaign,whichisbasedonexportledmodel.RajansaidthedriveshouldfocusontappingthedomesticdemandstrengthinsteadofhopingforaChinalikeexportledmodelinaslowinganduncertainworld.

    Thecountryneedstolookto"regionalanddomesticdemandforourgrowthtomakeinIndiaprimarilyforIndia",Rajansaid,addingifexternaldemandgrowthislikelytobemuted,wehavetoproducefortheinternalmarket.Thismeanswehavetoworkoncreatingthestrongestsustainableunifiedmarketwecan,whichrequiresareductioninthetransactionscostsofbuyingandsellingthroughoutthecountry.

    Inshort,thoughGreeceisn'tadangertoIndia,thecrisistherecansignificantlygeneratepessimismamongglobalinvestorsandIndiashouldguarditselfbystrengtheningthedomesticfundamentals.AccordingtoCrisil'sJoshi,supportinginvestorsentimentsinapessimisticglobalscenarioiskeyforIndiatocontinuewithitsrevivalstory.

    TheshortmessageisthatthegovernmentneedstopushthekeyreformslandbillandGSTandkeep

  • 7/1/2015 Print:GreececrisisisnotamajorworrynowbutitremindsIndiastoryshouldbedomesticdriven

    http://www.firstpost.com/printpage.php?idno=2317254&sr_no=0 3/3

    spendingtorevivetheeconomicactivities.Therearen'tanysignificantinvestmentpickupseenyet(inthedomesticmarket)'.

    Tobesure,therearesomepositivesignalsemergingfromrecentmacrodata.Economistsnotethatthe11.1percentgrowthincapitalgoodsanindicatorofcorporateinvestmentactivityinAprilcomparedwith8.7percentinthepreviousmonthisencouraging.Ifthegovernmentbeginsitspromisedpublicinvestmentpushinkeysectors,theearlysignsofrevivalseenintheindustrialactivitiescantakefirmhold,despitewhathappensglobally.


Worry Mind Map

Overcoming Worry

Unproductive worry

Worry-Free TM Worry-Free - Online Help Home

Group Annual Report 2011 - heta-asset-resolution.com · the year. Increasing worry about Greece becoming bankrupt and about the solvency of other eurozone economies such as Ireland,

Divided we stand, united we worry: Predictors of worry in

SATELLITE VIEW OF GREECE Greece. SATELLITE VIEW OF GREECE Greece

The polyuric child When we worry? Andromachi Mitsioni Departement of Pediatric Nephrology P. & A. Kyriakou Childrens Hospital Athens - GREECE ESPN, Lyon-Sept.2008

Dont worry group

ess worry - First Psychology · anxiety anxiety anxiety worry worry worry panic panic panic panic loneliness loneliness. USE OUR TOOLKIT. ... to the COVID-19 public health crisis

With Hu...Ilm is Epic - Firstpost

Don't Worry Be Happy - Understanding the Nature of Worry ...t Worry Be Happy... · Don't Worry Be Happy? Understanding the Nature of Worry and Anxiety Provided Courtesy of Dr. Rami

Fear & Worry

WORRY ANGELS

Don’t worry Instead pray Don’t worry Instead pray

Worry Says What? - National Center for Youth Issues · Worry Says What? Allison Edwards, author of the best-selling book Why Smart Kids Worry, offers a glimpse into the ways worry

What should we worry about when we worry about housing problems?

Firstpost : A Global Case Study on leveraging Facebook Live effectively

Worry Bones

IAFEI Quarterlyклуб-финансовых-директоров.рф/quarterly/IAFEI_quarterly_14th... · Greece, Article Banks Worry about Greek Receivables by Stefan Ruhkamp,

don't worry

Why Worry?

Lokpal Live_ Does AAP Really Want to Prosecute Corrupt_ Asks Bedi _ Firstpost

Manisha Gupta on Why She Quit Axis Bank for AAP _ Firstpost

Dont Worry

Greece. Find Greece Greece Capital of Greece: Athens

(Why overseas M&A options are off India Inc’s menu for now _ Firstpost)

Firstpost eBook on Vadra and DLF

ukulelesunite.files.wordpress.com...Dont worry, be happy. Dm In every life we have some trouble, but when you worry, you make it double. (spoken) Don't worry, be happy. (Dont worry

Less Worry

Firstpost book, Prime Minister Narendra Modi

Don't Worry

Should I Worry About This? Should I Worry About This?

Science Firstpost

STAY POSITIVE. - LIV Health · stay active. 2. Practice identifying whether your worry is “real problem” worry or “hypothetical worry”. 3. Practice postponing your worry