Whenever an economist makes a judgement call., never trust that eCONomist. For example., all eCONomists jumped and predicted that India's GDP growth rate will shrink by as much as 2%., and some #mediapimps went to the town stating that India's GDP will shrink!
Now this same eCONomists are taking a rain check by making the following statement:http://economictimes.indiatimes.com/news/economy/indicators/indias-strong-gdp-data-leaves-economists-scratching-their-heads/articleshow/57397628.cms
And when confronted with data., here is what eCONomists state:
Little surprise, then, that Tuesday's robust GDP figures have left economists dazed, and have also raised fresh doubts about the quality of India's official economic data reporting.
"Perhaps this data is not capturing the impact of demonetisation," said Aneesh Srivastava, chief investment officer, IDBI Federal Life Insurance Co.
"I am totally surprised and stunned to see this number."
So if the number is against your bias., then the numbers are wrong! Aren't economists supposed to be objective? Hence a subjective economist is more a eCONomist!
And this is outright ridiculous
"There are widespread doubts about the accuracy of the national accounts numbers," analysts at Capital Economics wrote. "The unexpected strength of today's data will do nothing to allay these concerns."
Who are those analcysts at Capital Economics? Is this the company & team https://www.capitaleconomics.com/about-us/our-team/
!? If that is the case then - funny no Indian hand from India and they can comment on Indian economy!
Now why is the following a good thing?
The Reserve Bank of India (RBI) left the policy repo rate on hold at 6.25 per cent for a second meeting in a row this month and signalled an end to its longest easing cycle since the global financial crisis, citing growing inflationary risks.
"With inflation pressures also building, we think that the RBI could begin hiking rates over the next 12-18 months," analysts at Capital Economics wrote in a note.
A tougher rate policy means that the quality of investment will be better and hence the investment has a better chance of weathering a downturn instead of looking at handouts from the tax payer. Further., in case of India (or the world over) the NPAs can be balanced out.
* My suggestion., do not invest with IDBI Federal Life Insurance Co. Your money will definitely sink.