Problems for GrowthPresented By-Sunil Pandey

Ajeet Patel

High Inflation – Inflation has shot up to 8.43% in August as against 7.48% in July. Food inflation remains high at 16.91%.

Slow Reform Movement

Earnings Slowdown – Impacted by higher Operating costs!

Current Account Deficit India’s current account deficit has surged to 4.1% of

GDP during second quarter of the fiscal as against 3.2% the previous year. Merchandise trade deficit widened to $35.4 billion.

Industrial Growth

Rising Interest Rates – Bank rate, Repo rate

Fiscal Deficit

FII Selling – Moving back to the West!

Global woes – Moody, S & P Ratings

Unforeseen Events – Kyoto Protocol, Natural Disaster.

Interest Rates

Currency Strength

Overall Economic Health

Discrimination

Population

Culture

Poor management

Corruption

Trade laws

Political instability

Climate

Location

Natural Resources

Stability

CONCLUSION