Source: DTN News By Roger Smith - Special Feature
(NSI News Source Info) TORONTO, Canada - June 26, 2010: Prime minister Manmohan Singh today left for Toronto to attend the G20 Summit this weekend after an over
night transit halt in Frankfurt.
*DTN News reports, Prime minister Manmohan Singh said last week at a meeting of foreign reporters that the country's economy is expected to grow at 8.5% in the current financial year.
*Toronto Star's Haroon Siddiqui claims meeting India's Prime Minister Manmohan Singh at his residence in New Delhi, India and reports the fragile world economy needs more stimulus spending, not cutbacks, India’s Prime Minister Manmohan Singh told Siddiqui in an exclusive interview.
Wading into the hottest topic of the G20 summit, he sided with Barack Obama against German Chancellor Angela Merkel and Britain’s David Cameron, who have both launched cutbacks and austerity programs to control mounting deficits and debts.
Without naming names, Prime Minister Manmohan Singh made it clear where he stands: “My own feeling is that early fiscal retrenchment carries very considerable global risks” of jeopardizing worldwide economic recovery.
“The purpose of G20 should be to ensure that the momentum of recovery is sustained and enhanced in the years to come,” Prime Minister Manmohan Singh told Siddiqui.
*DTN News elaborate further on the subject, ahead of the G-20 Summit in Toronto, Prime Minister Manmohan Singh on Friday said it was necessary for the global economy to continue to recover in a stable and predictable manner without succumbing to protectionist tendencies.
“We need investment and capital flows, as well as an open and rule based trading system that does not succumb to protectionist tendencies,” Prime Minister Manmohan Singh said in a statement before his departure for the two-day Summit from Saturday during which he will also have talks with US President Barack Obama and other leaders.
Cautioning that the recovery of the global economy was “still fragile and uneven” with new “worrying signs emerging in the Euro zone”, Prime Minister Manmohan Singh said the challenge for the Toronto Summit will be three-fold.
These challenges would be to ensure that global economic recovery is durable, balanced and sustainable; to calibrate exit strategies in the light of growing concerns over expansionary fiscal policies; and to focus on medium and long-term structural issues relating to governance issues, he said. “As the Indian economy grows and further integrates with the international system, we have an increasingly direct stake in all these matters,” he said, adding to meet “our ambitious development targets it is necessary that the global economy continue to recover in a stable and predictable manner.”Singh said the coordinated policy actions taken by the G-20 countries since November 2008 have not only helped to prevent a crisis of the type the world saw in the 1930s but also contributed to global economic recovery. “This is a sign of the G 20s success. At the same time, we have to be conscious that the recovery is still fragile and uneven. New worrying signs have emerged in the Euro zone,” Prime Minister Manmohan Singh said.
*Indian Economy 2010 Overview: Compiled analyzed and researched by Roger Smith (KV) DTN News
It’s almost a decade since we entered into the 2000s. Economic growth in these years wasn’t so impressive for the western economies. It proves to be one of the worst economic period for those economies. Indeed, the so-called fastest growing economies (such as India, Brazil, China, Mexico, Russia, and Indonesia) have seen a unprecedented economic expansion because, the eastern economies were the producers and the western economies were the consumer and the same trend would likely to continue as the companies, nowadays, are more conscious about the cost. Rising input cost (or raw material) are forcing the corporations in the industrialized economies to shift their focus on the cost-effective region to keep up the pricing competitiveness in the specific industry, they are in. Change in consumer trend is also major concern for the companies to invest more in the process of innovation, research and development (R&D).
As the economic pace is picking up, global commodity prices have staged a comeback from lows and global trade has also seen a decent growth over the last two years. Unprecedented Government intervention and exceptionally large interest rate cuts by the central bank in advanced and emerging economies have contributed a lot to pull the global economy up from the deepest recession since the World War II. Several Governments around the world launched the stimulus packages to prop up the economic growth, generate employment opportunities and the overall economic growth with the aim to reduce uncertainty in the economy and increased confidence. In this VMW research, we’ll discuss about the overall economic prospect for the year 2010 and the how the Indian Economy emerge from the ongoing economic repairment.
*Economic Prospect For Year 2010
Global economy is seems to be expanding after a recent shock. Indian Economy, however just felt the blow of the global economic recession and the real economic growth have seen a sharp fall followed by the lower exports, capital outflow and corporate restructuring. It is expected that the global economies continue to stay strong in the short-term as the effect of stimulus is still strong as tax cuts are working their through the system and infrastructure projects will come through in early 2010. Due to strong position of liquidity in the market, large corporations now have access to capital in corporate credit markets.
Year 2009 has started on the gloomy note, however the trend reversed from the first quarter of the year, financial markets posted strong gains fueled by huge amount of capital inflows which was set-aside during the economic downturn in search of a higher yield. Number of companies jumped into the equity markets to raise funds to de-leverage themselves, corporate risk have declined. Before the beginning of the economic recession, several companies betted on the better economic future and blindly raised funds thru various options (largely in a way of debt). Real Estate was the hardest hit industry during the recession. Many companies even offloaded their huge amount of stake, in order to meet the deadline to pay-off the short-term debt. Not only the realty companies which has faced that situation, actually many Small & Medium Enterprises (SMEs) have opted that option to expand themselves aggressively and routed out of the business. As the new year begins, the new wave of optimism has surrounded the economies to expand further from the recent shock, with the expectations of fresh stimulus package, shrink in unemployment rate, expectations of the high inflation, higher interest rates in the emerging economies. Over the next few months, inflation would be a worrisome for the economies. According to the estimates, inflation would likely to reach up to 10%, resulted, the expectations of the monetary policy tightening from the Reserve Bank of India in the second quarter review of monetary policy. Asian economies – Chinese economy in particular, along with India are in the strongest place for a sustained recovery. There are increasing signs of a recovery in a private domestic demand and expected to grow at 8.5% in the current financial year.
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News, contact: dtnnews@ymail.com
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