Expert Economist Mr. Siddharth Shankar on S& P Outlook

"The outlook downgrade is no surprise, it is just that someone has come and told us what we actually know. I do not expect the 4th qtr GDP number of the last fiscal to be more than 5.5% and going forward too, the  probability of its going up sharply is low. US is stable and trying to settle, Europe is still struggling and it would be couple of years before Europe gets into a stable mode, growth will come post that. The way inflation in India is moving and the way RBI has cut interest rates the probability of savings going up is not there. Since banks offer a -ve interest rate gold imports will continue to rise putting pressure on the rupee and thus further inflation. I do not see oil prices coming down anytime soon thus worsening the deficit  situation. In case the monsoon plays a spoil sport this year we are in for very bad times.

The government faces perhaps one of the widest budget deficit among the emerging economies and borrowing needs for 12-13 are huge. The gap last year was about 6% and going forward there is no reason to believe that the deficit will fall. In case it falls due to disinvestment or auction of natural resources like the spectrum liquidity will be pulled out of the system which again would mean further inputs from RBI and thus inflation.

At the current stage of the Indian economy monetary policy or fiscal policy will be of no help, we need to improve efficiency, cut consumption and ask banks to lend to businesses as easily as they lend to buy cars."

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.