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India Gets Worse

It's been some time since we applied the toecaps to India's prospects.

So, rather fortuitously, up pops this piece from the Business Standard, which should cause a frisson of discomfiture amongst the denizens of various boardrooms in StuttgartGothenburgMunich and Warrenville.

We won't go into the numbers, but things do look to be a bit shaky, and, given that inflation within the Indian economy is now at a 13 year high - at 12.01 per cent - we have to assume that the RBI - which has shown itself to be quite ready to put the thumbscrews on in the past - isn't likely to shy away from some nasty fiscal manoeuvring in the not too distant. For those OEMs who might be seen to be both over-exposed to and over-invested in India - and who could be accused of having paid well over the odds for the privilege - hello Volvo - this could prove to be rather tiresome.

 

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This page contains a single entry from the blog posted on August 11, 2008 7:18 PM.

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