Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: TDS :: VAT RATES :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: empanelment :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: due date for vat payment :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4%
« Markets »
 Why we must tweak the market-led model
 PE transactions prompt income tax queries over round tripping concerns
 Amended India-Mauritius tax treaty only covers investments in shares
 Government drops cap gains tax on startup shares held for 2 years
 Tax-free bonds regain demand in the secondary market
 Relevant Market’ Under Competition Act, 2002
 Indian markets best in terms of earnings momentum, price revision
 How India will become a common market with GST
 Broader markets outperform; Nifty holds 8,500
 Have Indian markets run ahead of fundamentals?
 Sebi mulls allowing foreign VCs in infra investment firms

India is ahead of most emerging markets: Stephen Roach, Non-Executive Chairman, Asia, Morgan Stanley
July, 18th 2011

Any executive representing an investment bank always makes politically correct statements. But there's one who speaks what he thinks (and also gives unadulterated analysis) -Stephen Roach, non-executive chairman, Asia, Morgan Stanley . Probably his economics background, and not just deal-making, helps. In an interview with Gayatri Nayak and MC Govardhana Rangan, Roach speaks about the headwinds that India and China are facing, to the faltering global economic recovery. Edited excerpts:

What is your advice to Indian policymakers to keep India an attractive market for global investors who are beginning to worry about high inflation and possible fiscal slippage?

My advice to India would be that the fiscal and monetary stimulus that was so very appropriate in 2008-2009 are over. Inflation is growing in the economy, they are not appropriate in the post-crisis rebound and the sooner you get back to the more difficult fiscal monetary situation the better it is for the economic development of India. RBI is focusing on controlling inflation.

India has had negative real interest rates for quite some time. What needs to be done when economic growth is also slowing?

The RBI has been self-restrained in raising real interest rates to reduce inflation. The monetary policy was relaxed. It is too early to understand the full implications of monetary policy actions. Right now, there is probably a need for monetary tightening by 50 to 100 basis points over the next six to nine months. But RBI will also have to assess the growth stance.

India has a huge fiscal deficit, while China has a huge fiscal surplus. Is it fair to compare India and China?

I agree with that. We do not want to face China and India with the same gloves. They have different macro-economic structures, different cyclical systems, different financial market developments. The record of China in the last thirty years is very important. They funded growth with high savings. India's savings have improved in the last six to seven years. India has a high rate of savings. But high deficits undermine the overall increase in savings.

Given the high inflation rate, do you see an impact on savings?

Well, it could. In a high inflation environment, you could expect individuals to save less and spend more. So there is certainly a risk that India would face.

Emerging markets have been a kind of destination for global investors for almost a decade now. Now that inflation is getting out of control and growth assumptions may not play out as expected. How do you see emerging markets in this backdrop?

I think the big challenge for emerging markets (India is a lot different in the basic emerging markets) is how they are going to deal with a period of sluggish growth in developed economies. Over the next three to five years, the growth is going to be surprisingly weak in the United States, Europe and Japan. What does this mean for these developing economies? The real pressure will be to focus on internal demand than external demand. India is actually ahead of most emerging markets, China is not.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions