Latest financial news from India

Aug 7
14:26

2013

Rinki Rawat

Rinki Rawat

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This Latest India News attracts numbers of visitors every day who want to know more about India and India News. The featured News sections about enter...

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This Latest India News attracts numbers of visitors every day who want to know more about India and India News. The featured News sections about entertainment,Latest financial news from India Articles education, sports, politics, and current links relating to India gives a greater impact to the picture of India as a whole. The latest news India is struggling about its sluggish economy and depreciating rupees. Every year, the economy’s prospects and downfalls are being reflected in the gift of nature- monsoon. In India, monsoon is the key to determine agricultural output, consumer spending, inflation and overall economic growth. If we are blessed with timely normal monsoons, it can definitely bring prosperity in our economy.

The Latest India News has predicted more pains for India as the depreciating rupee has not only exposed the economy to a risk of stagflation, it may face recessionary pressure in the future if the current trend of low trend growth and frequent spikes in business cycles continues for long. Stagflation in an economic situation when inflation remains high for a long time and growth falls below trend with higher rate of unemployment. Recession is contraction of an economy for two consecutive quarters. In any case, inflation in India is not sufficiently controlled. It is already too high. And the top it, there is the depreciating rupee, leading the economy to stagflation.

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Reserve Bank of India governor however dismissed of such a threat saying that the central bank was sensitive to growth concerns but not at the cost of higher inflation. The banking regulator resisted itself from reducing key short term rates in its last monetary policy review as the fall in rupee makes imports costly and puts pressure on prices of essential goods. India news is that it also faces one-third possibility of its economic downswings turning into recessions in the long run as its trend growth has slowed and cycle volatility increased. Apart from that latest India news shows that, low trend growth in developed economies lead to higher fluctuations in consumer demand and lower imports from developing nations. Country's which imports early stage goods and export semi-finished or finished goods like India are more vulnerable to fluctuating demands. It can also impact the demand for gold in India. Despite the economic slowdown and depreciation of Indian rupee, India continues to be a major importer of gold in the international market. It is a major concern for Indian economy as Current Account Deficit is on the rise.