"India economy is expected to grow between 6.8% to 7.2% in the fiscal year of 2027"
India is expected to be the fastest growing economy in the world; growing faster than Germany, United Kingdom, and Japan. India's economy was expected to suffer after the U.S enacted a 50% tariff on exports for the U.S. But, even with this ginormous tariff India's economy is still growing. India 's market has found other consumers to sell their products to.
India lowered it rates on good and services to help boost consumption which seems to be benefiting the country but, even with all this growth and prosperity India still has weak points. India's currency is the weakest currency out of all the Asian countries. India runs on a trade deficit so it depends on foreign capital flow to help keep the currency strong. When there is not enough capital flow coming to India the currency weakens. Due to this international investors are avoiding investing in India due to this risk. Why invest in India when you can invest in a country with a much safer currency and less "risk". If you were an international investor would you take the risk with investing in India? And is there any ideas you have that could help strengthen the rupee?
https://www.cnbc.com/2026/01/29/india-economy-growth-7-point-2-percent.html
I'm really impressed by India's ability to grow despite the aforementioned limitations. I did some research into India's business environment in a previous International Business class, and am reminded of its contradictory nature by this article. Although there is a desire to grow and a driven workforce in India, there are hurdles that still need to be faced to entice investors. For example, there is still a significant portion of low-skilled workers, and a cracking infrastructure under the mass migration to urban areas. An improvement in these areas-- either funded by the Indian government or other Asian nations-- may strengthen the rupee and investor interest.
ReplyDeleteLove the post! I was curious on your opinion about other ideas to strengthening the Rupee, such sovereign bond inclusions or export based hard currency? The fluctuations of these currency are very interesting, and I appreciate you touching on this topic!
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