1. Rupee weakness
Further weakening of the rupee due to a lower supply of dollars and higher interest rates abroad.
2. GDP growth
Economists predicting a lower GDP for the current fiscal year, a disastrous sign since we just witnessed a GDP drop from 6.2% to 5% from the last fiscal year to the current fiscal year.
3. Current account deficit
A further rise in India's current account deficit.
4. Foreign reserves
The government signaling that within months it might run out of foreign reserves.
5. Short-term debt
$170 billion in short-term debt to pay, while in 2008 it was just $80 billion.
6. FII investment
From May to August 2013, FII investments in India having gone down by $2 billion.
7. Elections
Both the private and public sectors staying clear on investment strategies until next year's elections.
When taking all of this into account, it will require a heroic effort by the newly appointed RBI governor, Raghuram Rajan, to prevent a currency crisis from unfolding.
Raghu Kumar is the co-founder of RKSV, a broking company. The opinions expressed here are the personal opinions of the author. NDTV is not responsible for the accuracy, completeness, suitability or validity of any information given here. All information is provided on an as-is basis. The information, facts or opinions appearing on the blog do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.
Further weakening of the rupee due to a lower supply of dollars and higher interest rates abroad.
2. GDP growth
Economists predicting a lower GDP for the current fiscal year, a disastrous sign since we just witnessed a GDP drop from 6.2% to 5% from the last fiscal year to the current fiscal year.
3. Current account deficit
A further rise in India's current account deficit.
4. Foreign reserves
The government signaling that within months it might run out of foreign reserves.
5. Short-term debt
$170 billion in short-term debt to pay, while in 2008 it was just $80 billion.
6. FII investment
From May to August 2013, FII investments in India having gone down by $2 billion.
7. Elections
Both the private and public sectors staying clear on investment strategies until next year's elections.
When taking all of this into account, it will require a heroic effort by the newly appointed RBI governor, Raghuram Rajan, to prevent a currency crisis from unfolding.
Raghu Kumar is the co-founder of RKSV, a broking company. The opinions expressed here are the personal opinions of the author. NDTV is not responsible for the accuracy, completeness, suitability or validity of any information given here. All information is provided on an as-is basis. The information, facts or opinions appearing on the blog do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.
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