Deflation is not a threat for India

India is not threatened by a deflation spiral that could derail economic development, the economic intelligence arm of global rating agency Moody's said today.

"Deflation is generally unwelcome by policymakers as it encourages consumers to delay purchases and businesses to postpone investment, which would eventually hurt GDP growth," Sherman Chan, an economist with Moody's Economy.com said.

"Lower prices may in fact boost consumption volumes, especially in poor regions. Meanwhile, cheaper input costs may also present a good opportunity to speed up construction of much needed infrastructure," Chan addded.

For the first time since the new wholesale price index (WPI) series started in 1995, India's annual rate of inflation has turned negative, falling to minus 1.61 percent for the week ended June 6. This has led to fears that this would lead to hoarding of food articles and a consequent rise in prices.

The inflation rate, which was 0.13 percent in the previous week, had last turned negative in 1977.

Where does Indian Metro's stand in reality NOWHERE !!

Just came for surfing on net after a day long tedious job... really software job is too blood sucking.... net surfing act as a Rejuvenation factor for me saw a link showing top 25 cities to live in.. looks kind of weird as a person living in a remote place but doesnot require anything from rest of world is by far the luckiest person and that place is the best place to live in.

We'll saw the list for some top 20 spots and then closed the link as couldn't find a single indian metro city in whole list forget about tier two cities of the country felt bad as lot of homework still needs to be done if we want any of our metro cities in the prestigious list (i am giving priority to Metro's as the tier 2 cities will follow), The infrastructure however still lies pathetic but after analyzing the last 5 years i can say that a lot of good has happened and next 20 years or so may be bangalore or New Delhi will figure in the list i am not very sure about the other metro's like mumbai and kolkata, The list of top 25 best places to live was majorly covering the european cities but may be 20 years from now we might see some of indian cities name in the list if not many. so i thought to show the list to the readers here it is :

1 - ZURICH

2 - COPENHAGEN

3 - TOKYO

4 - MUNICH

5 - HELSINKI

6 - STOCKHOLM

7 - VIENNA

8 - PARIS

9 - MELBOURNE

10 - BERLIN

11 - HONOLULU

12 - MADRID

13 - SYDNEY

14 - VANCOUVER

15 - BARCELONA

16 - FUKUOKA

17 - OSLO

18 - SINGAPORE

19 - MONTREAL

20 - AUCKLAND

23 - AMSTERDAM

24 - GENEVA

25 - LISBON

India's April fiscal deficit at $11 billion

India's fiscal deficit in April was at 541.58 billion rupees ($11 billion), or 16.3 percent of the full-year target, the government said in a statement on Tuesday. Tax receipts were at 74.62 billion rupees while expenditure were at 662.17 billion rupees for the first month of 2009/10 fiscal year.

India's GDP may average 7.2 pc over next 5 yrs

India's real GDP growth will average at 7.2 per cent over the next five years even as risks to the global economy continue to remain high, the Economist Intelligence Unit (EIU) has said.



The world's second-fastest growing economy may also see negative inflation for the next 3-6 months triggering expectation of rate cuts by banks, the research arm of London-based Economist added.

"Emerging Asia will be the world's fastest-growing region over the next five years (2010-13), but this mainly reflects a relatively strong growth performance by India and China. The EIU expects India's real GDP growth to average 7.2 per cent over the next five years," it said.

Global share prices have been boosted on expectations that the worst of the global economic meltdown is over, however, a sustainable recovery is distant, it maintained.

There may be more green shoots of recovery in the global economy as fiscal and monetary stimulus packages start to have an impact, but "growth over the next two years will be marked by a high degree of volatility", Vohra said. There will be a substantial slowdown in quarter-on- quarter growth rates once the stimulus fades, he added.

courtesy economictimes