The announcement at the weekend by Indian Prime Minister Dr Manmohan Singh that something will be announced on Monday was awaited with huge hopes. Now it turns out that the Indian Finance Ministry have increased their Bond purchase target by overseas investors by $5 billion. This is the alternative way of raising funds for development, and although no big ticket projects have been pre-announced, it may be an indication that something will be done with the money being invited.
Strangely enough, on the news wires, I note that Qatar is looking to invest $5 billion. They could consider investing it in India.
Indian Finance Minister Dr Pranab Mukherjee (known respectfully as Pranab-da to his community and Pranab-babu in the Ministry) is resigning his office - so he can focus on the task in hand, namely that of becoming the President. He has been so nominated by majority of the parties, the exception being the Trinamool Congress under Mrs. Mamta Banerjee. Pranabda has his fondest dreams for further development for West Bengal, and under his Presidency will receive considerable attention it is to be hoped.
Hopefully, an interest rate cut may not be ruled out. It is one of the tools that would alleviate the situation. Perhaps a cautious approach of gradual reductions of 50 basis points over the coming months could be on the cards?