The Indian economy has been under repair for almost 4 years now. The hard work done by BJP led government at the centre has resulted in a stable economic scenario. The economic reforms led by demonetisation and tax structure reforms are likely to take India to 8%+ growth trajectory in 2018-19. This will be aided by widespread increase in infrastructure spending leading to job creation and demand for core industries.
The recent announcement of recapitalizing banks has spurred markets and opened channels of capital flow for the MSME sector. The knee-jerk reaction of GST rollout is going to be short-lived. We believe the economy is going to roar once GST teething troubles are over with millions of businesses coming in mainstream tax structure.
The only missing factor is job creation amid digitisation of business process resulting in reduced headcounts in almost all the industries. This will limit consumption led demand keeping inflationary trends under check.
Looking at the above factors we believe the exchange rate will be stable going forward. The 63 to 66.50 range will hold on for the next 6-9 months provided there are no external or geopolitical shocks from Euro zone or China. The state assembly elections results in Gujarat and Himachal is likely to reduce the opposition to size clearing way for Narendra Modi to win 2019 Lok Sabha election.
In the foreign exchange markets, what should be the strategy for exporters and importers going forward?
07 Jun 2019 05:12 PM
The trade war is a situation in which countries involved damage each other’s trade by imposing tariffs on imports with the broad intention of saving its own industries and creating job opportunities for its citizen.
31 May 2019 02:55 PM
Foreign Services from reliable service providers like that of Myforexeye include a range of solution that is aimed to help businesses and individual traders to better their trading every day by analyzing the market’s movements.
27 May 2019 05:45 PM
Enterprises who are into the import and export business strive to derive financial flexibility to boost their purchasing power. With efficient export and import financing strategies one can help businesses face its financial challenges.
24 May 2019 03:19 PM
1. Foreign exchange as the term says is an exchange of foreign currency. Exchange of one country’s currency against another country’s is done in the foreign exchange or forex market.
23 May 2019 12:04 PM
Foreign exchange depends on the value of the currency. And, as far as the valuation of currency is concerned, it again depends on a number of factors such as - trade, investment, tourism, and geopolitical risk. The foreign exchange market also repres
21 May 2019 05:13 PM
A letter of credit provides an irrevocable guarantee to the seller that provided the goods and/or services are delivered to the buyer according to contractual terms and with the required documents, it will be paid by the bank that issued letter of cr