A 30% drop in manufacturing GDP – India Inc. in trouble?
Rohit Purakayastha
Nov. 30, 2007

Indian economy is cooling down with Dollar in a free fall and American economy already in a deep recession moving into levels never seen since the depression in the thirties.

In a massive downward revision, India's gross domestic product (GDP) for the second quarter of 2007-08 released on Friday showed that manufacturing growth fell to 8.6 per cent from 12.7 per cent in the same period of the previous year.

India Inc has been cautioning the government that the tight monetary policy of the Reserve Bank of India (RBI) to curb inflation and ease pressures on rising rupee would take a toll on the demand for industrial goods, and retard growth.

India’s fiscal mismanagement is noteworthy. The real effect of commodity inflation is still hidden and manipulated by the Indian Government. When the reality hits ground and native Indians start paying $90-100 barrel oil, inflation will skyrocket. India can turn into an instantaneous negative growth case. The hyperinflation in India is inevitable. India has mismanaged its economy just like Central and South Americans did in seventies and eighties thinking Americans will bring ‘Nirvana’. Western money flow in and then when they find they are wrong they are ruthless in pulling the plug. China has acted smart. It has enough safeguards to refuse the Americans every penny of investment once the American companies decide to flee the Asian economies. India has acted with naivety. There is no way India can refuse bankrupting itself once American and European companies flee Asia for cover.

India Inc. is deepest trouble. The hyper inflation in India is happening now! The Reserve Bank of India will tighten further. Reduction in money supply higher interest rates will create real trouble in the economy. The cooling Indian economy is ready to plunge into deep depression with little demand from Europe and America.

A 30% drop in manufacturing GDP – India Inc. in trouble?
Rohit Purakayastha
India’s fiscal mismanagement is noteworthy. The real effect of commodity inflation is still hidden and manipulated by the Indian Government. When the reality hits ground and native Indians start paying $90-100 barrel oil, inflation will skyrocket.
READ MORE>>

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