Mumbai Terror strike will not affect Indian economy

Mumbai Terror strike will not affect Indian economy

 

The last week terror strike in Indian economic capital, Mumbai will not hinder the growing trends of Indian economy. All economic analysts agree about that Indian will continue one of business hubs in Asia. Jim O’Neill, chief economist at Goldman Sachs Group, was quoted as saying by Bloomberg press. O’Neill, who in 2001 coined the acronym BRIC from the initials of the four big emerging economies of Brazil, Russia, India and China, said, “So long as Indian and Pakistani policy makers don’t do really silly things, India is in a position to start doing better than people think it might do.”

O’Neill said the fact that the Bombay Stock Exchange’s stock index rose on the first trading day after the attacks showed there was no “panic” among investors.

“It’s not going to have any long-term impact on business in India,” said Karl Slym, managing director of the Indian unit of General Motors, the largest U.S. automaker. “We have a billion-dollar investment. We had a new plant that just opened a couple of months ago. We continue to ramp up that new plant and other investments as well for India.”

 

To continually falling of oil prices will help to move downwards of current inflation 8.84 that is moved from 12.42, that was 16 years highest in 3 months in the Indian economy.

 

 

 

If India keep the coalition politics for long time and do stimulate action for foreign investments such as attracting FDI, FII, It could make India to be economically strong country.