Key Points
A 7%-plus rate of economic expansion gives it breathing room to slay inflation before embarking on a fresh investment spree after the polls..
Unless the Modi government surprises analysts by announcing a populist spending program in its Feb. 1 budget, the reasonable assumption is that its angling for an upgrade to its sovereign rating, which is perched at the lowest rung of investment grade..
While the Chinese authorities struggle to stimulate the economy with 3 trillion yuan ($418 billion ) in long-term cash injections has the worlds attention, the Indian deficit the widest since 2010 is also beginning to worry investors...
The monetary authority wants banks to pay extra for funds and charge more on loans, thus completing the transmission of higher policy rates...
However, investors are only beginning to weigh the risk of a sharp squeeze on Indian banks margins if the liquidity drought drags on..
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