ravi1967

Morgan Stanley Revises India's GDP Growth Estimates Down

my humble request to mr.gordy is to come of out mumbai. mumbai is not india. the super riches live in mumbai. they have not been touched by inflation as salaries are increased. but to who are the major companies supplying ? indian customers(read mum,pop,wife) employed in software majors servicing us and european markets. so if usa takes a hit, will not these comapnies take a hit. ( see infy projections that project confirmations are being postponed ). ultimately there will be layoff's and bang goes the bubble. Mumbai is just a small nano fraction of india.Take note that most of the super riches do their shopping in dubai,london and newyork.
Just take a look at india industrial production numbers IIP, auto sales numbers, quarterly figures of sales of major companies and you will see the decline slowly setting in. this is because customer is having a credit squeeze.unless inflation is tackeld ,the credit squeeze will not go away.i am not an economist, but a technical analyst of stocks and commodities and i travel a lot to know the ground realities. i was short in indian stocks right from january 2008!!!.

Morgan Stanley Revises India's GDP Growth Estimates Down

i agree with MS. The primary concern is containing inflation that is ballooning out of control. Edible oil i use is up for 70 per litre to about 150 per litre in just 4 months, wheat up by nearly 20%. Thus common man will vote out the current government in 2009 polls. but who will form the next gov, is the moot point as no one has a clue on containg inflation.Ultimately credit lending will face a massive cut , lending rates will go up, and stagflation is going to set in as we couple with US and European markets.so bye bye growth figures of 10%. i anm sure the real figures will be 6% and not around 8% as projected by MS