Wednesday 4 September 2013

Indian rupee depreciates, a opportunity to invest

Due to geo-political reasons, wrong policy decisions by Indian government and rise in crude prices has led the downfall of Indian rupee. Is it a oppotunity to invest in India ?

A subject of debate. Well if we think the other way, long term investment in India's certain businesses and real estates / hospitality industry will be benefited in long term. Cost of medication will be cheaper in India compared to european conterparts.

If government comes out with a policy creating good business atmosphere for foreign investors / NRI, then there can be a good investment opportunity in India.

Unfortunately the chances of such policies are not seen as next year there are elections and polictical leaders are busy in doing their groundwork for elections.

No doubt long term investment will be profitable in certain areas except manufacturing, which should be thought only after elections.

If Syria war triggers then indian rupee's downfall will be sharp because crude prices will shoot up and India's spending on imports will go up, widening the defecit impacting the economy.
Automatically India's image will be downgraded and it will affect the foreign investors who have invested in Indian manufacturing industries,  they will start pulling out resulting the economy downfall.
A crucial moment for India and next government. It will be a biggest challenge for the future government to restructure the economical dents.

If India wants to regain then growth in exports is must, cuttig down of imports will balance the defecit. Its going to be a long struggle.  

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