Rising fuel prices means higher transportation costs that will hit consumers already dealing with high food inflation.
India is not alone in seeing its currency depreciate - other emerging markets like Brazil and South Africa have also been affected by the strengthening of the dollar. But economists here say the rupee was already under pressure from a high fiscal deficit, untamable inflation and a lack of foreign direct investment.
The falling rupee could help Indian exports by making them cheaper. But N. R. Bhanamurthy with the New Delhi-based National Institute of Public Finance and Policy said that is likely not enough to overcome many of the challenges that foreign companies face doing business in India.
“I think it’s very important for the government to bring in more growth-oriented policies so that you attract more investment. In fact, you can control the domestic capital going out. For the last two to three months, there is a trend that domestic capital is going out,” said Bhanamurthy.
Whether it was dealing with bureaucracy or bribes, Anant Dehadrai saw firsthand the hurdles foreign companies face as a former head of a Japanese firm in India and now an investor in India’s health system. “If I have an opportunity to be in India or somewhere else, I would rather go somewhere else," Dehadrai stated. "Where it’s so much easier to do business. At the end of the day, I want to optimize my profits. Why should I come here?”
最新
2013-11-25
2013-11-25
2013-11-25
2013-11-25
2013-11-25
2013-11-25