Kamal Chand takes a break from watering his wheat field to sit under a banyan tree and flick through advertisements for motorbikes. Rising welfare payments have turned the Indian farmer’s dream of owning one into reality.
India’s biggest two-day stock market slide since 2009, surging bond yields and a plunge in the rupee to a record low are pressuring officials for fresh steps to stem capital outflows and support the economy.
India’s latest economic data and a renewed bid to pare a record current-account deficit that’s spurred a rupee slide show stagflation conditions persist almost a year after the government started a drive to revive investment.
India may overtake China as the world’s fastest growing major economy by 2015, as the South Asian nation doubles infrastructure investment and adds six-fold more workers than its northern neighbor, Morgan Stanley said.
India faces growing strain to fund the widest current-account deficit in major Asian nations after the rupee slid to an all-time low on concern the U.S. will curb monetary stimulus as its economy improves.
U.S. stocks tumbled, sending the Dow Jones Industrial Average down more than 400 points for the fourth time this month, on concern the global economy is slowing and speculation that European banks lack enough capital.