Inflation in the Present Context

“In context of my previous article written last year it is just beginning of recession affecting India. This article is about what is the current situation of market.” As per the statement of Mr. Kamalesh Barot, president of the federation of Hotels and Restaurants Association of India says from Last 2 Quarters the market is too rough due to high operating costs and foreign currency flucations. EIH Group which Operates Oberoi Hotel Chain Posted a net Loss of `18.3 crores. Figures clearly suggest there has been a slowdown in demand. Growth of foreign exchange earnings also dipped to 8 percent from last year 21% percent for October. The biggest sources markets for hospitality are the US & Europe are still down compared to last year added Barot. Hamesh Arora, director, National Indian Bullion Refinery says India is not seen the worst condition of market since years. The market slows down of market from last 2 quarters sales volumes. In Q1 of 2012, gold demand was down 29 per cent, and in Q2, it further declined 38 per cent, against the corresponding quarters in 2011. The loss is because price instability the government policies and bullion market are keeps on flucating day on day this results very adverse effect on merchants. Asian Development Bank (ADB) on 3rd October 2012 cut India's economic growth forecast for the current financial year to 5.6%, from its earlier projection of 7.0%, arguing that plunging global demand and a delayed monsoon that will hit agricultural growth would worsen the slowdown. As per Today’s Business & Standard Article Gita Gopinath, estimates India's economic growth at 5.5 per cent for this fiscal. She also added it is very important for the RBI to focus on inflation. It has had some success in bringing down inflation to 7.81 per cent. Without help from the fiscal side, inflation control should remain a priority of the RBI. Besides, a large part of the slowdown in growth in India is due to an uncertain policy environment and lack of implementation of reforms Pressure has been mounting for lower interest rates, and the Reserve Bank of India last week put markets on notice that it may ease in the first quarter of 2013, although it did not specify when. It left interest rates on hold, but cut the cash reserve ratio for banks, another policy tool. Development but there is high fear in the investors wall mart is ready to enter Indian Markets as per the weak FDI Policies . As even Though FDI Policy was increased to Insurance sector there is much growth in Indian Insurance sector because there is High risk is there in Non Life insurance sectors preventing foreign investors to come to India. Mounting Pressure to reduce fiscal Deficit. Inflation has hit not only Indian Market but also world many IT Companies expressed their interest in Winning Obama This may be good time for the IT sector , Automobile & Jewellery Sector For Stable Growth . From Last Month They Market went into deep crisis by speculating the market. Again Obama’s rules can build the protective wall to the investors and government of India for the better Policy.