SINGAPORE (PTI): While further devaluation of the Indian rupee is unlikely in the coming six to 12 months, a gradual 8-10% slide against the U.S. dollar should not be ruled out, an Asian economic survey has said.
In its latest monthly commentary on Asian economies, the global securities research and economic group, said a surge in imports suggested an economic recovery was. underway but inflation remained a major concern for India.
It said inflation had climbed steadily from 12.9% in January to 14.7% in May, averaging about 14% during the first month of 1992. ‘ “It is unlikely that inflation will 3 ease much during the coming six to 12 months, inevitably, the short term impact of decontrolling of allowing the rupee to be effectively devalued,” it added.
Saying that it would be premature to dismiss India’s economic liberalization policy as a “mere” flash in the pan”, the survey the basic policy thrust towards” further opening up the economy. and the medium-to-long term impact of the reforms that have a ready taken place remains” much intact.
Article extracted from this publication >> Aug 28, 1992
