Expert Economist Mr. Siddharth Shankar on RBI Policy

“To my mind a 50 basis point rate cut was too aggressive. By cutting the rate by 50 basis points RBI has thrown the ball of growth into the court of the government.

This rate cut will lead only to demand that has for the first time started moderating and thus was helping contain inflation. Weak rupee, oil price increase, increased imports all will lead to higher inflation. While the RBI feels that inflation will be range bound, to my mind it is dependent on a number of external factors that are beyond our control. The way Indian trade deficit is moving I see rupee moving to the range of 54 to a dollar which in turn means inflation. Govet borrowing is not expected to fall, which in turn means inflation. The only way inflation can be contained is if the world economies don’t pick up and commodity prices remain low, which no one would want. Thus to my mind inflation is here to stay with substantial upside risk.

The GDP projection of 6.9% is too optimistic and to my mind it should not be over 6.5% for the entire 11-12. For the next year the way global economy is moving the GDP numbers may not be too impressive. Even if they are they need to co-related to what has constituted to their increase. Thus, whatever are the projections for the next year only reflect a status quo in terms of growth for the economy.

Going forward I would not expect RBI to reduce further anytime soon.”

MR. SIDDHARTH SHANKAR,  Director, KASSA INDIA 

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.

 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.