Friday, July 20, 2012

RBI take note: US ‘fiscal cliff’ will affect India too, especially bonds

....The RBI will have to watch out for the progress on the US economy in framing its own policy stance. If the US is likely to go into a mild recession in 2013, India will face its after effects. Revenues from IT service exports to merchandise trade will be hit, impacting the domestic economy. The Indian economy is in one of its worst phases with fourth quarter GDP growth at a nine-year low of 5.3 percent......

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