Finally some MBA stuff!!
Somehow, I was always inclined towards writing stuff, which non-MBAs find interesting, but today I have an article which MBAs might like :)
In the news paper MINT, yesterday's headlines were: India will not curb the capital inflows...This meant that, more money flows into India in terms of Dollars, which would mean that rupee would appreciate, imagine what would be the status of Indian exports and especially IT companies. But with India becoming a lucrative destination for investment one cannot stop money pouring in. With the declining exports I thought Government would have given lot of thought.
Look at the IMF suggestion of not to put any curbs on the capital inflow. IMF new managing director Dominique Strauss-Khan told reporters, pointing out that the capital inflows have an unavoidable impact on the value of rupee, the IMF chief said "nevertheless it reflects the fundamentals and you don't want to do anything which in one way or another undermines this good look or appreciation or forecast of your national economy.
Now, comes today, and look at the headlines. "Foreign Inflows may be tightened further". How our politicians backtrack on their own statements!!
I guess government eventually had to budge to the strong IT lobbying group and even the pressure from exporters. It has decided to curb the capital inflows and ensure that there is no further growth in rupees.
Let us see if they are going to change their tone any more in the coming days.
In the news paper MINT, yesterday's headlines were: India will not curb the capital inflows...This meant that, more money flows into India in terms of Dollars, which would mean that rupee would appreciate, imagine what would be the status of Indian exports and especially IT companies. But with India becoming a lucrative destination for investment one cannot stop money pouring in. With the declining exports I thought Government would have given lot of thought.
Look at the IMF suggestion of not to put any curbs on the capital inflow. IMF new managing director Dominique Strauss-Khan told reporters, pointing out that the capital inflows have an unavoidable impact on the value of rupee, the IMF chief said "nevertheless it reflects the fundamentals and you don't want to do anything which in one way or another undermines this good look or appreciation or forecast of your national economy.
Now, comes today, and look at the headlines. "Foreign Inflows may be tightened further". How our politicians backtrack on their own statements!!
I guess government eventually had to budge to the strong IT lobbying group and even the pressure from exporters. It has decided to curb the capital inflows and ensure that there is no further growth in rupees.
Let us see if they are going to change their tone any more in the coming days.
Comments