Karan Chanana, CEO of Amira Nature Foods, believes that the recent decline of the rupee is more a reflection of what is happening with the U.S. dollar as opposed to any sort of decline in the fundamentals of the Indian economy.

1. Top Indian CEOs Optimistic On Economic Future
Posted on September 19, 2013
Sept. 19 – While India has struggled as of late economically, there are signs that the future holds much
more promise for this recently embattled country. After hitting an all-time low, the rupee has risen to 63
from 68 compared to the U.S. dollar. Moreover, in recent surveys, Indian industrial production had risen by
close to 3 percent, and half of the industrial groups surveyed reported seeing a rise in their growth rates.
Further, car sales in India have also seen an increase in sales of 15.37 percent over last year.
In support, Reliance Industries chairman Mukesh Ambani believes business leaders already view India as
having a more positive outlook, noting that: “India should look beyond the gloom and doom.”
In addition, Karan Chanana, CEO of Amira Nature Foods, believes that the recent decline of the rupee is
more a reflection of what is happening with the U.S. dollar as opposed to any sort of decline in the
fundamentals of the Indian economy.
“India is re-calibrating. This economy can grow again at 7%. Perception is not matching the reality.
Executives have got to look through the fog,” Chanana commented.
However, some analysts, such as Alexander Muromcew, Portfolio Manager of the TIAA-CREF Emerging
Markets Equity Fund, remain skeptical as to whether India can continue its positive trends – especially since
the 2014 election cycle will soon be beginning.
Regardless, many other analysts such as those from the Ashmore Group believe that there are many
underlying factors that still make India a good bet. A big part of this belief lies in the existence of the
country’s young, and increasingly urban, population.
Additionally, the economy is diversifying itself much more into overseas exports. In fact, the lower rupee
has actually helped to boost exports from the country.
The new Reserve Bank of India (RBI) Governor Raghuram Rajan has also inspired hope by implementing a
number of corrective measures such as putting interest rate cuts on hold in order to defend the rupee.
Data from Japan-based financial services group Nomura has shown that India received about US$36 billion
in foreign equity investments in 2012 for the second straight year – the most an emerging Asian country has
ever received. The reasons for these investments range from cheap valuations to the prospect of future
growth.

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