Nomura's Varma Says RBI to Stay on Hold in 2017

The video discusses China's One Belt One Road initiative and its implications for India, focusing on political and economic considerations. It examines India's market reactions post-elections, highlighting political stability and infrastructure spending. The Reserve Bank of India's concerns about inflation and monetary policy are analyzed, considering factors like demonetization and core inflation. The potential short-term disruptions and long-term benefits of India's GST implementation are also explored.

What is the primary reason for India's non-participation in China's One Belt, One Road initiative?

• Cultural differences

• Political sovereignty concerns

• Economic benefits

• Lack of infrastructure needs

What triggered the Indian stock market frenzy post-elections?

• Political continuity and stability

• Foreign investments

• Decrease in interest rates

• Introduction of new economic policies

What is the Reserve Bank of India's main concern regarding current inflation rates?

• Rising oil prices

• Increasing food prices

• High core inflation

• Sustainability of low inflation

How did demonetization affect inflation in India?

• Decreased inflation in cash-intensive categories

• No impact on inflation

• Increased inflation in food prices

• Increased inflation in all sectors

What is a potential short-term effect of GST implementation in India?

• Reduction in consumer demand

• Immediate economic growth

• Increase in service costs

• Decrease in government tax revenues

What long-term benefit is expected from GST implementation?

• Improved tax efficiency

• Higher inflation rates

• Decreased government revenue

• Increased tax evasion

What is the expected impact of GST on consumer behavior in the short term?

• No change in consumer behavior

• Postponement of demand for certain goods

• Immediate increase in luxury goods demand

• Increase in demand for all goods