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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (5817)	8/24/1999 10:18:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Rupee may drop to 52 per dollar: Thomson Financial BankWatch Our Mumbai Bureau (Economic Times) 24 AUGUST THOMSON Financial BankWatch (TFBW), the worlds largest bank rating agency has forecast that the rupee will touch Rs 52 against the dollar by end of the current financial year. In a report on India, the agency says that given the inflation differential between India and its major trading partners, the rupee is expected to depreciate gradually in the coming months. While exports have picked up for the time being, a reversal could exert pressure on the RBI to accelerate the pace of the rupee's weakening, says the agency. With respect to the economy, TFBW says that the government's counter-cyclical spending has supported consumption rather than investment, constraining long-term growth prospects. A disproportionate amount of banking sector assets is absorbed by the public sector, the agency notes. The decision to allow 100 per cent foreign ownership in road and port projects below Rs 1,500 crore should help address the problem of chronic infrastructure. Another positive development is the downward trend in the government of India's debt service ratio, from 24.30 per cent in financial year '95-96 to an estimated 18 per cent in '98-99. The agency feels that 7-8 per cent annual real GDP growth rates are required to make serious inroads into India's poverty and income inequality. This is why the recent climbdown of the growth rate over the past two years could present a serious challenge to social and economic stability, says TFBW. Given the heightened competition among emerging markets for both foreign direct investment and portfolio investment, India has not done enough to enhance its attractiveness to foreign investors, feels the agency.

To: Mohan Marette who wrote (5817)	8/25/1999 1:08:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Profits blossom for Punjab farmers By Aasiya Lodhi in Chandigarh Farmers in India's largest agricultural state, Punjab, are gaining substantial profits from new, non-traditional crops and novel methods of farming. The state's agricultural economy, which contributes to nearly half of Punjab's state income, has so far been heavily dependent on wheat and rice. Returns have risen up to 10 times compared with conventional crops But now cash crops like strawberries, grapes, flowers, potato seeds and exotic vegetables are in. Given the right conditions, it could be the kind of diversification which Punjab's stagnant economy so badly needs. The new generation of farmers - often educated abroad - are experimenting with new technologies and marketing techniques. And the figures are undoubtedly impressive.... news.bbc.co.uk