Just the annual incremental output in 2012 – at an estimated nominal Rs21 billion – is greater than the entire GDP of the country was as recently as 1987. “Growth at any cost” has never been our credo.
The recently published minutes of the FOMC suggest that there has been consideration given to moderating the pace of quantitative easing, and there are fears that this could result in significant reversals of capital flows from emerging economies. However, we believe that for this reversal to occur will require a sustained improvement in the unemployment situation.