I did a quick World Sum Up on 10th November.
I said that India could grow despite the high interest rate.
On that point I was utterly wrong.
The food price inflation in India has started to come down,
but the petrol prices which had been reduced seem to be
on the up-tick.
Airlines there as everywhere else in the world are experiencing
problems with high fuel costs.
To promote further economic growth, Oil price will have to head south,
towards $85 a barrel for WTI. So many U.S. airlines are squeezed by
the high oil price as well.
The second macro driver is the interest rate.
In India, I respectfully suggest they try and bring it towards 6 percent.
All the major and developed economies seem to be trending that way.
In a globaalised world, India cannot stand alone.
It's like standing aloof when everyone else is trying to dodge the winds.