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Chidambaram: India?s finance
minister notes that ?if economic
growth happens, everything else
will fall into place?
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The national elections held in May have cast a shadow on India's shining economic story. Foreign investors are reassessing growth prospects now that the Congress Party, which relies on communist allies, has taken over.
A jump in the annual inflation rate to 5.5% in early June caused bond yields to rise to a one-year high, and the rupee slid as foreign portfolio investors sold over $700 million in the six weeks from May. Those investors had pumped a record $7 billion into the Indian stock market last year and a further $4 billion in the four months to April this year.
Coalition governments are not new to...
