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News and Views (Term 6, 2012-13)

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21 December 2012 Preparing for placement : some reflections 1 The Wharton Approach : As early as Term 3, choose the target company and industry Do at least 100 hours of research on the company and the industry Position yourself with the target company (contd.. next slide)

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Preparing for placement : some reflections 2 Questions that high profile employers expect potential applicants to have thought through : Are you really ( really ) interested in our company, our industry? Where is our industry heading? What are the major trends you see? What do you think the strategic position of our company should be in the prevailing, emerging environment?
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Indian Economy : A broad overview GDP growth in Q1 at 29 quarter low. Q2 only slightly better. Slowdown in both investment and consumption. Global growth prospects worsening (debt overhang, a wobbling Europe ) Price pressures ( significant suppressed inflation, sharp fall in the rupee in the first half of 2012) Domestic supply bottlenecks of industrial inputs and also coal and electricity Monsoon Deficit Fiscal and monetary space remain very limited ( high fiscal deficit, persistent inflation. Fiscal deficit for 2012-13 is at risk of being breached due to likely overshooting of subsidies and a shortfall in receipts) Headline WPI inflation persisted above 7%, while CPI is close to double digit Decline in net service exports and sustainable CAD (RBI puts it at 2.5% of GDP) Rise in external debt and vulnerability to external shocks ( Source : RBI Databse) 2/2/13 4

Question
Can we attempt a SWOT analysis of the Indian economy as of now ( October 2012 ) ?

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Indian Economy : a SWOT analysis Strengths

nLarge

Weaknesses
nQ1

size and an innate resilience nReasonably high, although slowing, growth rates

growth at 29 quarter low nSlowdown in both investment and consumption nPrice pressures ( suppressed inflation, rupee depreciation) nSupply and infrastructure bottlenecks ( coal, oil, electricity ) nMonsoon deficit nLimited fiscal and monetary space ( high fiscal deficit, persistent inflation )

Opportunities
nBRIC,

Threats
nContinuing

South and South-east Asia, Latin America nOpportunities for multilateral action towards rebalancing the global economy 2/2/13

slowdown in the Triad- USA, Europe, Japan(debt overhang, a wobbling Europe) nDecline in net service exports, as also in sustainable CAD ( 2.5% of GDP) nRise in external debt and the prospect of external shocks 66

Argentina, an update
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GDP: Nominal $ 448 billion, PPP $ 716 billion, growth 8.8% in 2011, Per Capital ( Nom) $ 10,945 Exports $ 84 billion ( Brazil 21%, China 9%, USA 5% Imports $ 74 billion ( Brazil 32%, China 14%, USA 11%, Germany 6%) Gross External Debt $ 133 Billion Public Debt 39.5% of GDP Credit Rating : B (Domestic) B ( Foreign), S & P Foreign Reserves $ 47 billion
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