India's exports are down as their economy boosts their local consumption and attracts more foreign investment. India is so hungry for foreign investment that they are OK with letting exports decline (although only the cheaper exports like textile, not the higher end ones like services, technology, and pharmaceuticals). This increase has helped the stock market and the government hopes that increase sales from stock prices will help lower their huge deficit.
Therefore, the rupee is rising rapidly - up 9% in the last 16 months. This could pose a problem in the long run as inflation could overheat the market. Many analysts worry that with other countries protecting their currency, maybe India should do the same.
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