India stumblesIndia’s status as an economic powerhouse in jeopardy as country falters
David Pett, FP | 13/08/22
India’s deepening financial woes, which include a sputtering economy and free-falling markets, could worsen in the days and weeks ahead, fuelling fears of a full-blown crisis emanating from the world’s second-most populous country.
“I have to say that market, currency and economic turmoil in India is disturbing and the ramifications are still unknown,” David Rosenberg, chief economist and strategist at Gluskin Sheff + Associates said. “But this is the tenth largest economy in the world so it is not a small deal.”
India has been touted in recent years as one of the great economic powers of the future and since 1997 has mostly lived up to the billing, growing its economy at an average annual clip of 7%.
That re*****tion, however, is in jeopardy and the country is faltering on several fronts. It’s GDP growth slowed in the first quarter to 4.8%, the weakest since the Great Recession. The rupee has fallen 17% since the beginning of May, and the S&P BSE Sensex index, India’s main equity benchmark, is down more than 10% in the past month alone.
Bond prices have also fallen hard, with yields on 10-year government debt hitting five-year highs earlier this week.
India’s richest man loses US$5.6-billion of his fortune as rupee slides
Mukesh Ambani, India’s richest man, is the biggest loser among the country’s billionaires as the rupee’s slump to record lows erased 24% of his fortune.
The chairman of Reliance Industries Ltd., operator of the world’s biggest oil refinery complex, has lost US$5.6-billion of his wealth since May 1, as the rupee’s plunge accelerated. The 56-year-old is left with a net worth of US$17.5-billion, according to the Bloomberg Billionaires Index...
https://business.financialpost.com/2013/08/22/indias-richest-man-loses-us5-6-billion-of-his-fortune-as-rupee-slides/