by Edward Hugh: Barcelona India is in the middle of a storm at the moment, there can be no doubt about that. But the important point to note is that this storm is not of India's making. The financial turmoil in a number of key developed economies, and above all the United States, is sending shock waves across the global economy, and as is normal, when the earth trembles, it is the most fragile who notice it most. India's economy may be fragile in the sense that it is very vulnerable to what is colloqially known as global risk sentiment, but it is not fragile in terms of being susceptible to having its growth trajectory knocked completely off course. India may be shaken, but her economy will not be broken. Emerging Market Bonds Emerging-market bonds had their worst week in four years this week as the deepening credit crisis raised global recession concerns ...

by Edward Hugh: BarcelonaIndia is in the middle of a storm at the moment, there can be no doubt about that. But the important point to note is that this storm is not of India's making. The financial turmoil in a number of key developed economies, and above all the United States, is sending shock waves across the global economy, and as is normal, when the earth trembles, it is the most fragile who notice it most. India's economy may be fragile in the sense that it is very vulnerable to what is colloqially known as global risk sentiment, but it is not fragile in terms of being susceptible to having its growth trajectory knocked completely off course. India may be shaken, but her economy will not be broken.Emerging Market BondsEmerging-market bonds had their worst week in four years this week as the deepening ...

Inflation accelerated again in India in the week ending June21, reaching its fastest pace in more than 13 years, and strengthening the case for the central bank to increase borrowing costs again this month. Wholesale prices rose 11.63 percent in the week to June 21, after gaining 11.42 percent in the previous week, according to the latest government report issued in Delhi last Friday.The Reserve Bank of India, which next meets to review rates on July 29, last month raised its benchmark interest rate twice to a six-year high of 8.5 percent and lifted its cash reserve ratio to 8.75 percent, in an ongoing battle to contain growth in the money supply and rein-in inflation. According to the latest RBI data the money supply rose 20.7 per cent year-on-year basis as of June 20, as against the 21.4 per ...