Most economic analysts assess rise and fall of economy by the fluctuations in the stock market. This perception is not without merit. The vicissitudes of stock exchange are indeed reflection of country's economic direction. Nevertheless, it is no more than just an indicator. If a company, or a cluster of companies for that matter, shows poor result, its stock goes down; that's natural. But the same is not true for the entire economic picture of the country.
Business is dynamic as well as a complex ballgame. The slump in steel industry is not enough evidence to rule out growth in automobile or locomotive or infrastructure sector. Like a pyramid of playing cards, businesses and sectors are intricately related to not only the economy of the country but also to the world. But strangely, while one misplaced card can destroy the entire pyramid, the same doesn't hold true in case of economies of nations. This is not merely an example of economic resilience, but presence of many other factors that work for the dynamics of economy.
China's growth rate is lowest, below 7.5%, in the last 3 years. So is India stressed with the growth rate sliding down to nearly 6.5%; and if Moody's rating is to be followed, the country may go down to 5.5%. These are really alarming indicators just like alarm for gasoline or engine oil in our automobile. China thinks that it knows what should be done. Premier Wen Jiabao has stated that stabilizing economic growth is the most pressing matter currently facing China. Policies and measures to stabilize economic growth currently include boosting consumption, diversifying exports and promoting investment. To register for Indopac Summit 2012 <a href="hpe.asia/register.html";>click here</a>
Likewise, India knows its remedy too. It has to rein in its budgetary deficit and inflation. Banks must lower their lending rates to help increase consumer spending. And the foremost need is to bring in more investment either through FDI or through internal resources. But that is not easy unless investors confidence is boosted up by weeding out the doubts that have germinated under influence of an all-pervading economic slowdown.
Indopac Summit is a potent platform that discusses out various issues of economic significance leading to a healthier sight for investors. Investors and Business representatives that would take part in the Summit would find the deliberations by top international economists and political leaders very useful to chart out the future growth plan in India and in other Asia Pacific region countries. Indopac Summit will take place between 2nd and 3rd October at Taj Mahal Hotel in New Delhi.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: HPE-ASIA
Additional disclosure: This international summit has going to be inaugurated by our Honorable PM Man Mohan Singh ji. And many more leaders from India and other countries. Mr. Kapil Sibbal, Minister of Human Resource Development, Minister of Communication & IT. India. Manish Tivari, National Spokesperson, Indian National Congress.