Many bankers and financial investors are worried about a repo rate hike by the RBI which is expected by Apr 29. Various financial institutions, Businessman are worried very much that the gorwth momentum would take a hit, if RBI does raise rates. Many great men are advising RBI to allow the rupee to appreciate and bring down the inflation.
I would like to remind them "A Economic growth which does not take with it, a large proportion of a population, is destined to fade out" . The Indian middle class, Who to many Fiis, are the backbone are starting to feel the pinch of Price rises, the lower class are even worst affected, about 60% of population fall into this category.
Indian Economy to me is a god blessed one rather than a one pushed by reforms. The People of india should thank God more than the government. A repo rate hike would have its short term pain, but on the long run, this would be seen a different thing.
The Proposed revision of Pay commission coupled with the salary hikes witnessed in the information technology sector will keep the prices steady and would offer more pain to be sucked once again by the poor.
Although Im a trader, I feel some spirits say to me that a nation which does not take care of its people who are in need will not survive for long.
