Finance, Forex and Investments

Imagine India's economy ?

Imagine India's economy touches 50 percent inflstion then what are its impact on indian economic ? & What are the couses of presant global inflation?

Public Comments

1. This is something unimaginable, hence cannot form any opinion.
2. You mean inflation rate of 50% per annum? Though such rates have taken place in some of the countries due to inherent problems like low technology, high investment in land and building without adequate safe guards, free capital account convertibility without ensuring a place in global trade etc., this is a little far fetched as far as the Indian economy is concerned which has a lot of skilled people, technology back up, controlled capital account convertibility etc., But the chief threat to Indian economy is corruption that is going without satisfactory action. If this goes up all the plus points of Indian economy will be nullified. The present global inflation is on account of huge lendings to consumer sector without bothering about the recoverability.