Today's most important economic news was about India.
There was a huge power cut in the north, affecting 18 of the 26 Indian States. In temperatures ranging from 23 to 38 degrees Centigrade, this was a terrible experience for the 670 million people affected. Most normally have their ceiling fans whirling; today, those who did not have generators or back up supply had to suffer the sweltering heat. The power grid has failed over two consecutive days, slowing down traffic and making people feel miserable. Power cuts and water shortage have become common-place in India, but not on such a scale. To say that the infrastructure needs upgrading is not saying anything that is not obvious.
The second piece of important news was that the Reserve Bank committee had decided to hold the repo rate at 8 percent, despite the slowing economy. The threat of inflation is seen as the main concern, but the lack of investment in Indian Bonds and the falling value of the Rupee seem disheartening.
If people are interested in encouraging further investment into India, such as FDI to build businesses which may be mutually beneficial to the investing organisations as well as India's growth, then surely the foreign currencies coming in would be converted into Indian Rupees, and strengthen the value thereof. In due course of time, that may happen, as more confidence builds in the Indian economy.
India has everything going for it, in terms of demographic mix and resources as well as potential for growth.
The monsoon has delivered less rain than normal at this time of year, and this will affect the crop yields. Water is depleted in the reservoirs, and its outflow is being rationed in most States.
However, the RainGod may show kindness and mercy on the people. For that, I pray