| India is in a sweet spot. The central government | | | | after having increased 9.3% to $14.61 billion in |
| budget which set the tone for reducing fiscal deficit | | | | December. Imports increased 35.5% in January to |
| and an unexpected increase in the policy rate to rein in | | | | $24.70 billion while oil imports rose by 56% to $7.05 |
| inflation has convinced the markets and economists | | | | billion. Non-oil imports, a barometer of investment |
| that India is on its way to having a robust economic | | | | activity, grew 28.8% to $17.65 billion. |
| growth. Industrial output also continued to grow at a | | | | |
| fast pace in January as companies produced more | | | | On the back of robust economic numbers and policy |
| cars and cement. In the fiscal year 2011 that ends in | | | | pronouncements, the rating agency Standard & |
| March 2011, GDP growth of 8.5% is achievable. | | | | Poor's raised its rating outlook to stable, expecting the |
| Long-term predictions for the southwest monsoons | | | | fiscal situation to recover and growth to remain strong |
| are expected to be normal, giving a boostto agricultural | | | | in the coming years. The government's commitment to |
| production and domestic demand. | | | | follow the recommendations of the 13th Finance |
| | | | | Commission, as well as its move to reduce fertilizer |
| Inflation in India has been surging, driven by a low base | | | | subsidies and raise domestic fuel prices were taken as |
| and high food prices as the weakest monsoon rains in | | | | positive indicators. The country's external position |
| 37 years last year hurt farm output. Inflation running at | | | | continues to be in a comfortable zone. |
| 8.5% may have peaked and it is expected to ease by | | | | |
| April as the winter-sown crop comes to market. The | | | | It is unlikely that India will benefit from the Google-China |
| year-on-year inflation rate for food articles was | | | | spat as the Indian government will not provide the kind |
| 16.22% in the week ending March 13, far above the | | | | of benefits China extends to the manufacturing sector |
| comfortable zone for the central bank and the | | | | in China. But some relocation is likely to emerge. For |
| government. In order to manage the inflationary | | | | example, American companies GoDaddy and Dell |
| expectations, the central bank increased overnight | | | | have threatened to pull out of China and relocate |
| lending and borrowing rates by 0.25 percentages point | | | | themselves in India. |
| each, making it one of the first major central banks to | | | | |
| raise rates. The central bank further announced that it | | | | Fisher Capital Management Korea is a leading global |
| would continue to roll back its loose monetary policy to | | | | financial institution holding extensive relationships with |
| manage prices, as the country can't have sustained | | | | financial institutions, institutional investors and |
| strong growth with high inflation. | | | | corporations across the world. |
| We expect a 0.25-percentage-point rate hike in | | | | As a full service company Fisher Capital Management |
| mid-April and another increase of one percentage | | | | Korea provides a full range of investment banking |
| point through March 2011. | | | | services including advanced risk management, |
| | | | | corporate strategy and structure, plus raising capital |
| Fisher Capital Management Korea News: The rebound | | | | through debt and equity markets. With this as our |
| in industrial activity also saw a surge in India's exports | | | | backbone we continue to provide a client service |
| for the third month running in January. Exports in | | | | second to none. |
| January rose 11.5% from a year earlier to $14.34 billion, | | | | |