http://www.businessweek.com/articles/2013-08-27/indias-rupee-keeps-falling-and-the-trade-deficit-keeps-widening
At first the idea of what is happening to India seems counterintuitive, however after reading into it more it makes a bit more sense. The weak currency coupled with inflation is a recipe for disaster. India needs to help themselves essentially. The lack of good infrastructure is greatly hindering them. Without having the proper infrastructure, it is almost impossible for them to improve some of the other parts of their economy because the resources needed are hard to move to and from the locations where they are needed.
The other problem facing them is the slow growth market. Without people greatly increasing their buying, it is hard to take part of any given market share. That is because so many of those people are very brand loyal. Hence to increase their market share they need a bunch of new people without those loyalties that would be willing to buy from them.
The fact that inflation is driving up prices so much within their country is really hindering their exports. Because they cannot produce goods that cost less than their competitors their export business is hurting really badly. That coupled with their reputation for lackluster quality is really damaging. Each of these issues is causing their trade deficit to become bigger and bigger.
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