Is India Prepared For U.S. Monetary Tightening Policy?

This new reform is already witnessing growth and a higher growth increase is expected in the near future. There already seems to be plans of defense collaboration between India and U.S. in just two months since the budget allowed the increase in FDI inflow.

Increased Rupee Value:  Ever Since the formation of the new government and also the budget that ease investments, FDI and taxes in many sectors there has been a good increase in the value of money which is now at 61.26 INR for $1.

This value is expected to not reduce much in the coming years so which means much of the concern is already priced in. This new rupee value is a good stand in terms of trade and foreign investment for India.

Investors piece of pie: After the budget release by the BJP government, investors having been going all out with investments in sectors that will see strong returns. They have ravaged the market with strong investment deals that is giving a good boost for a stronger lasting economy.

The market curtain raise by the BJP gives a good prospectus for a prolonged growth in strong investments. This will help India curb any fall out even if U.S. tightens its monetary policy.

Economic growth on rise: In a short span of time there has been a good increase in growth. Many sectors, like power generation (11.2 percent), automobile industry, and also witness a growth percentage of 3.1 in July.

These growths put India on a strong path to recovery and stabilization of a good economy even if America tightens their monetary policy.

Also Read:
U.S. Biggest Arms Supplier To India In Last Three Years: Govt
India to Surpass U.S. Economy by Mid-21st Century: Vietnam Expert