“I think the move by RBI is correct given the scenario that we are still on a trajectory that will lead of about 7% annual GDP growth rate. Inflation is important to control in an economy like India, an economy where the majority of the population spends money to meet their very basic needs.
While the industry may feel the pinch I sometime wonder why do we not de-regulate the ECB. The industry can borrow from overseas at very cheap rates. In case the fear is of repatriation, I have my doubts that it would be repatriated any time soon.
Going forward I expect the inflation do drop very fast. Not that the absolute inflation will fall but the figures would reflect a fall. The reason for this fall would be a higher base effect and the crop coming into the market.
Thus I feel that RBI may not raise the interest rates any further.
The global outlook still remains grim and we may see more monetary easing in the global markets that will lead to inflation. Thus, it is important that RBI directs banks to lend to sectors that are not consumption driven. In the long run it is higher productivity and lower consumption that will be the
key to success. RBI will need to ensure that banks lend to agri sector as easily as they did to consumers buying cars.”
Mr. Siddharth Shankar is a leading Economist & Financial Expert. He has been associated with KASSA group since its incorporation under various capacities as a Director, shareholder and consultant. An expert in the field of Macro-Economics, Mr. Siddharth Shankar has established himself as a mastermind in tackling financial hurdles for his clients. He has more than a decade's expertise in structuring financial products for companies to cover their financial risks that were generated due to their international exposure to money and commodity markets. He has been involved with the marketing systems of Google, Yahoo and other global search engine giants to achieve maximum effectiveness of their campaigns. His expertise also lies in Product Conceptualization and Web- based marketing of Products.
Being a thought leader in the field of Macro-economic, he can provide a detailed analysis on the subject for your esteemed publication.
Being a thought leader in the field of Macro-economic, he can provide a detailed analysis on the subject for your esteemed publication.
Mr. Siddharth Shankar started raising his career graph at the tender age of 19. He had set-up his first fully automatic diamond cutting plant production unit, the first of its kind in Delhi, employing 20 people. By the time he touched his 20`s, he initiated trading of diamonds in the world’s largest diamond market-Antwerp. During this period he simultaneously started giving consultancy on Financial Management to various corporate houses in Europe, India and South-East Asia.
At 22, as a seasoned Financial Risks Manager, he started structuring Financial Products for companies to cover their financial risks that were generated due to their international exposure to Money and commodity markets.
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