Thursday, October 11, 2007

where Indian economy is going.....

The economy of india is on a run....the GDP growing at more than 8% and still growing......

Is it overheated?

Well it is getting overheated......how can I say that?

Simple....the inflation is growing very high......

So...?

the demand is more than supply......so the prices are increasing....thus economy is overheated.....that's the criteria I put for concluding that the economy is overheated.

the globalization is taking place......so the performance of indian economy will have a factor of globalization included into it when we are analysing the economy.

the price rise can also be because of the excess supply of money in the economy......
the forex inflow is growing...the FII figures are telling that.....the foreign investors are getting attracted towards the country......lot of hedge funds are investing in India.....


And they should be.......there is a lot of growth still on the platter that the Indian economy has to provide......

So Investors ...... happy Investing!!!!!!!!!!!!!!!