Wednesday, September 29, 2021
What’s the silver lining as Inflation rises in India? | Economic Times
There is now a very strong demand which will translate into much higher investment all over the world including India, which can be a spur for growth and trade, says Swaminathan Aiyar, Consulting Editor, ET Now. China is looking to increase power tariffs for its industries. Natural gas prices are going up; coal prices are expected to go up. Do you see inflation being transitionary in nature? Also what is the India impact of that? Inflation is going to rear its head. It has already reared its head the world over. India is more linked to the world economy on some of these parameters than people realise. So inflation is high in India. It is certainly rising in other places too. There is some volatility in India because food prices are going up and down. But I would simply say yes, inflation is a threat for every country. We have had so many years of mass printing of money without generating consumer price inflation. We are reaching the end of that and once that end is reached, we are seeing an unexpected and unanticipated spurt in prices across the board and supplies. Look at the ships piled up all over the place; look at the chip shortages which people are now saying will continue right till the end of 2022. On the supply side, there is a problem and on the demand side there is so much accumulated pent up demand! The money is out there and now with the end of fear of Covid, we are going to get additional demand in India and in the rest of the world. This is a global phenomenon and India is neither capable of going it alone or escaping it, although at the margin we can try to be a little better. Historically, this has been a high inflation, high interest rate country and we will continue to be that. The positive part of it is that there is now a very strong demand which will translate into much higher investment all over the world including India, which can be a spur for growth and trade. These are the positives, but yes inflation by itself is a dampener and we need to take care of that. But it is worth saying that there is a silver lining and that is now reflecting a strong increase in global demand and that is good for India.
Tags
# Economic News
Recommended Articles
- Economic News
Airlines hoping for more Boeing jets could be waiting awhileJan 25, 2024
Airlines hoping for more Boeing jets could be waiting awhile https://ift.tt/G629RhP Federal Aviation Administration has put a limit the plane maker's ...
- Economic News
There is a vertical growth in the capital market and money flow will become bigger as we go forward: Raamdeo AgrawalJan 25, 2024
There is a vertical growth in the capital market and money flow will become bigger as we go forward: Raamdeo Agrawal https://ift.tt/AD2q4vg Oswal Grou...
- Economic News
Ajay Singh, Sky One and Busy Bee file firm bids for Go FirstJan 24, 2024
Ajay Singh, Sky One and Busy Bee file firm bids for Go First https://ift.tt/QWNES70 promoter Ajay Singh, Sky One, and Busy Bee have submitted the bank...
- Economic News
Indices gain 1% on short covering, traders see choppy days aheadJan 24, 2024
Indices gain 1% on short covering, traders see choppy days ahead https://ift.tt/KXAwqrm Nifty rose 215.15 points, or 1.01%, to close at 21,453. The Se...
Labels:
Economic News
Subscribe to:
Post Comments (Atom)
Featured Post
-
A professional finance-themed image depicting various top trading jobs in the USA with salary insights. The scene includes financial char...
-
AMAZON COMPANY - Amazon is the world wide famous American electronic commerce company which headquarters in Seattle, Washington. Amazon...
-
A simple comparison image of Bing vs. Google Search. The image is divided into two sections: on the left, Bing's logo with a blue back...
No comments:
Post a Comment