FY 2010 ends on March, 31, 2011 and our industry captains look concerned about the next FY, 2011. Nevertheless, the issue that caught attention is Foreign-Direct-Investment (FDI) because of changing policies and lingering reforms, whatsoever.
When it comes to reforms the first thing that comes to mind, from the point of view of demand and economy, is labor reforms, since demand for our industry products are destined to come form bottom of the pyramid, means lower class.
However, as far as FDI is concerned the climate of the economy is conducive to it. For the Indian currency is not so strong and in the course of time it has only one way to go and that is to go up (appreciate). And, from a foreign investors point of view they have every reason to gain, since when you pull back your investment you take your home currency back to your market and as has mentioned above Indian currency has every reason to appreciate if we rely on market fundamentals and long-run growth, 5-10 years ahead. Therefore, investment opportunities for Indian currency and economy, too, look great.
As far as, reforms are concerned reform of labor-market and retail are important. When we talk about reforms the first thing that concerns a concerned mind is whether the specific market is organized or not? Organized, because whether it follows a pattern and decision taken regarding its betterment affects all alike, bottom to top and top to bottom. To sum up, Indian labor market is not organized in this particular sense. Top is going more on top and bottom is stuck to the bottom. The only class that has seen some transformation is the Indian middle-class.
Even in retail-market any pattern is not visible cities, actually big cities have plenty of supply in form of local-stores and malls, even if people prefer to go to malls for shopping. Local-stores take care of local consumers or they go to malls one a week or once a month. Actually, shops and malls are not a problem but the stock of goods they maintain and maintain with uncertainty creates uncertainty somewherelse in small places. Nevertheless, stocks are also maintained for black marketing and difference in prices, whatever little, plays an important role in diverting consumers from shops to malls and every kind of shop under a single roof is a good opportunity to exploit from the point of view of transport facilities.
Strong currency also means higher purchasing power and opening of the import sector is another way to increase Indian welfare in form of low prices and availability of goods and services…
Long live reforms!!!
When it comes to reforms the first thing that comes to mind, from the point of view of demand and economy, is labor reforms, since demand for our industry products are destined to come form bottom of the pyramid, means lower class.
However, as far as FDI is concerned the climate of the economy is conducive to it. For the Indian currency is not so strong and in the course of time it has only one way to go and that is to go up (appreciate). And, from a foreign investors point of view they have every reason to gain, since when you pull back your investment you take your home currency back to your market and as has mentioned above Indian currency has every reason to appreciate if we rely on market fundamentals and long-run growth, 5-10 years ahead. Therefore, investment opportunities for Indian currency and economy, too, look great.
As far as, reforms are concerned reform of labor-market and retail are important. When we talk about reforms the first thing that concerns a concerned mind is whether the specific market is organized or not? Organized, because whether it follows a pattern and decision taken regarding its betterment affects all alike, bottom to top and top to bottom. To sum up, Indian labor market is not organized in this particular sense. Top is going more on top and bottom is stuck to the bottom. The only class that has seen some transformation is the Indian middle-class.
Even in retail-market any pattern is not visible cities, actually big cities have plenty of supply in form of local-stores and malls, even if people prefer to go to malls for shopping. Local-stores take care of local consumers or they go to malls one a week or once a month. Actually, shops and malls are not a problem but the stock of goods they maintain and maintain with uncertainty creates uncertainty somewherelse in small places. Nevertheless, stocks are also maintained for black marketing and difference in prices, whatever little, plays an important role in diverting consumers from shops to malls and every kind of shop under a single roof is a good opportunity to exploit from the point of view of transport facilities.
Strong currency also means higher purchasing power and opening of the import sector is another way to increase Indian welfare in form of low prices and availability of goods and services…
Long live reforms!!!
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