After a long time I am writing on my blog. This time on a Diwali day, market is gloom Mahurat session ended in red and Economy is in bad state, IIP nos. are disappointing, manufacturing growth is negative and in all this gloom I am again writing here to initiate a discussion to understand what is more important or rather what requires our attention Growth or Inflation.
Government has started taking steps towards the revival but the saying suggest "aag lahgne ke baad khadda nahi khoda jata". The best possible way to bring back the growth is bringing foreign investment in the country. FIIs are that capable of holding the growth but FDI is and will be the main source of the growth. Government has allowed allowed FDI in Multi Brand retail, increased the FDI limit in Single Brand retail and in aviation as well as in Insurance but still the sentiments have not changed. The reason behind this is implementation of these steps taken by the government, even after taking the decision to allow FDI, the RBI has not incorporated this change in their system.
RBI governor is in a dilemma what to prioritize, Growth or Inflation. RBI has given priority to the growth. Interest rates are still high though the RBI has provided liquidity in the system but that is not enough. When the country is facing a threat of credit degradation, they must take step for improving the economy and allow growth.
What is more important here is to provide a one window clearances for such investments in India. FDI limit is different in different sectors but it is important that we provide easy and fast clearances to such investments.
In my views RBI should lower the interest rate in their next review which will allow the industry to borrow and start looking for the growth.
Government has started taking steps towards the revival but the saying suggest "aag lahgne ke baad khadda nahi khoda jata". The best possible way to bring back the growth is bringing foreign investment in the country. FIIs are that capable of holding the growth but FDI is and will be the main source of the growth. Government has allowed allowed FDI in Multi Brand retail, increased the FDI limit in Single Brand retail and in aviation as well as in Insurance but still the sentiments have not changed. The reason behind this is implementation of these steps taken by the government, even after taking the decision to allow FDI, the RBI has not incorporated this change in their system.
RBI governor is in a dilemma what to prioritize, Growth or Inflation. RBI has given priority to the growth. Interest rates are still high though the RBI has provided liquidity in the system but that is not enough. When the country is facing a threat of credit degradation, they must take step for improving the economy and allow growth.
What is more important here is to provide a one window clearances for such investments in India. FDI limit is different in different sectors but it is important that we provide easy and fast clearances to such investments.
In my views RBI should lower the interest rate in their next review which will allow the industry to borrow and start looking for the growth.
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