Sunday 10 July 2011

INDIA’S ECONOMIC CONCERNS

afp_logo

BEARS CIRCLE INDIA'S SLOWING ECONOMY

Penny MacRae

AFP, July 10, 2011

NEW DELHI — Not long ago it was the toast of investors, but India's appeal has taken a hit, with bearish sentiment building thanks to worries over stubbornly high inflation and widespread political corruption.

Investor ardour for Asia's third-largest economy has been cooled by a litany of bad news, from slowing growth, rising prices and spiralling interest rates to paralysis on economic reforms and a string of high-profile graft scandals.

Last week, global business information agency Dun and Bradstreet reported that its India business optimism index had fallen by a hefty 22 percent quarter-on-quarter.

"There has been a confluence of bad news dragging down sentiment," Kaushal Sampat, Dun and Bradstreet's India chief executive, told AFP.

The bad news comes as the government battles multiple corruption scandals that forced the resignation of a second cabinet minister last week over accusations he abused his power while he held the telecom portfolio.

"There are so many political fires, it makes it hard for the government to focus on the economic challenges such as reforms needed to spur growth," says Sampat.

(...) [artículo aquí]

No comments: