Morgan Stanley: India is the only country in Asia with a account defict

[davidson]

NDTV , 26 Jan 2012

India is the only country in Asia with a current account deficit. "You are heavily depended on capital inflows to finance your external shortfall…and right now with equity investors around the world are very nervous…their ability to track foreign capital to fund your current account deficit is a serious question," Morgan Stanley's StephenRoach said in an interview to NDTV Profit from Davos in Switzerland.

Roach also criticised the Indian government's move to ask public sector enterprises to increase spending to kick start the economy. (Indian gov = Lazy government)

China better investment bet than India in current environment: Roach

 

[davidson]

Prashant: In the recent report you said that India has a greater risk than China. We all talk about hard landing for China. But you say India is the one we should watch out for. Why is that?

Stephen: Well, China has a lot of discretion to use fiscal or monetary policy to temper the impacts of the slowdown, which so far has been very limited for China. India just doesn't have the room to adjust its fiscal and monetary policy. India is the only country in Asia with a current account deficit. Its currency has been in a free fall and there is a inflation problem and very difficult to ease monetary policy in that environment. India’s consolidated budget deficit is 9% of GDP...so, it’s very difficult to use a fiscal policy to stimulate. Both economies are slowing. Actually India has slowed more sharply recently than china. so I think fears of hard landing in china are over blown but I think optimism in India right now is I think is overstretched.

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Prashant: I mean People on the other side of the argument point out that the Reserve bank of India has got $300 billion of forex reserves. So that’s healthy. That covers the short term external debt…

Stephen: China has got $3 trillion so if we are making comparisons who it would be…a central bank with $3 trillion or a central bank with $300 billion?

 

[Jade]

Unfortunately, there is a lot of truth in Roach's statement. China has a better control over its fiscal and monetary policy than India has.

However, in long run, India being a balanced and domestic driven economy, respect for IP laws, much younger demographics, much superior political and judicial system will beat China hands down.

 

[Chinese-Dragon]

Unfortunately, there is a lot of truth in Roach's statement. China has a better control over its fiscal and monetary policy than India has.

However, in long run, India being a balanced and domestic driven economy, respect for IP laws, much younger demographics, much superior political and judicial system will beat China hands down.

How many times has your superior system back-flipped on the retail FDI issue?

 

[davidson]

However, in long run, India being a balanced and domestic driven economy, respect for IP laws, much younger demographics, much superior political and judicial system will beat China hands down.

you totally wrong, China's domestic market is 4 times bigger than India

 

[Jade]

How many times has your superior system back-flipped on the retail FDI issue?

Yes, Chinese system helps in faster decision making, but Indian system takers care that a consensus is reached before decisions are taken. Hence a temporary back-flipped on the retail FDI. Decisions taken by consensus have long term impact.

---------- Post added at 02:38 PM ---------- Previous post was at 02:37 PM ----------

you totally wrong, China's domestic market is 4 times bigger than India

What a dumb post. Chinese economy is larger, so is its domestic market.

 

[SpArK]

Yes, Chinese system helps in faster decision making, but Indian system takers care that a consensus is reached before decisions are taken. Hence a temporary back-flipped on the retail FDI. Decisions taken by consensus have long term impact.

---------- Post added at 02:38 PM ---------- Previous post was at 02:37 PM ----------





What a dumb post. Chinese economy is larger, so is its domestic market.

FDI in the single brand retail has been announced and major players are queing up in the markets.

Already the Stock markets were high in last and present week due to the inflow of capital from foreign investors.

Slow and Steady wins the race.. truly..

 

[Jade]

FDI in the single brand retail has been announced and major players are queing up in the markets.

Already the Stock markets were high in last and present week due to the inflow of capital from foreign investors.

Slow and Steady wins the race.. truly..

Yes you are right, I would have preferred a full liberalization of FDI in retail. This would have been an ideal start to second generations economic reforms

 

[S10]

FDI in the single brand retail has been announced and major players are queing up in the markets.

Already the Stock markets were high in last and present week due to the inflow of capital from foreign investors.

Slow and Steady wins the race.. truly..

Slowly and steadily shaving 25% off the value of your currency within 6 months? Yep winning......

 

[Roybot]

Slowly and steadily shaving 25% off the value of your currency within 6 months? Yep winning......

Rupee hits 10-week high, falls below 50 to dollar

The rupee has gained over 5.5 per cent year-to-date against a fall of over 10 per cent last year.

 

[SpArK]

Slowly and steadily shaving 25% off the value of your currency within 6 months? Yep winning......

Yesterday's news

Foreign Investors Buy Net 9.09 Billion Rupees of Indian Equities - Bloomberg


You angry bro?

 

[conworldus]

Rupee hits 10-week high, falls below 50 to dollar

It is the result of your central bank selling dollars.

Business Line : Industry & Economy / Banking : Forex reserves drop $1.01 b to $292.5 b

 

[Sadhu]

You guys talks on FDI in retail ...do you atleast take a minute And pause to think about impact it will have on our local shops And kirana..... What does Progress means to you
-Having Big shiny Malls or where All ppl will enjoy their well being...
-Where a billionare company sales you a product so cheaply that others can't afford to ,And i doing so wipes out competition entirely....

THis is All hobalaah for FDI .....

 

[Götterdämmerung]

However, in long run, India being a balanced and domestic driven economy, respect for IP laws, much younger demographics, much superior political and judicial system will beat China hands down.

My old prof, who I often disagreed with, once said: "In the long run, we'll all be dead". I think there is some grain of truth in it.

 

[jha]

My old prof, who I often disagreed with, once said: "In the long run, we'll all be dead". I think there is some grain of truth in it.

Sadly old profs used to behave in this manner only... "Hindu Growth Rate" rings any bell...?