IMC to hold symposium of critical economic issues

Mumbai, Mar 24 (UNI) Economic Research&Training Foundation (ERTF), a wing of the Indian Merchants' Chamber, is embarking on a bimonthly initiative series called 'The Viewpoint Hour', a symposium on critical economic issues facing the country.

''The purpose of this is to get the best brains together to discuss the most topical theme and arrive at some consensus,'' says Indian Merchants Chamber (IMC) president Rajesh Kapadia in a press release today.

The first of the symposium series will be held on March 29 on the subject 'Do global imbalances pose a threat to the sensex?' The sensex has breached the 11,000 mark and shows no sign of stopping. The question, which is bothering investors, is whether this level is sustainable or is it a mere bubble waiting to burst.

The fear stems from certain global developments. This is a period of high global growth as also high imbalances. The US deficits are on a high, Japan and Europe are facing the constraints of an ageing population and Chinese NPAs are mounting.

In these circumstances, if there is a hike in interest rates in EU and US or a sudden increase in oil prices, the Indian economy could receive a body blow. The FII inflows, which have, thus, far been spurring the market, could suddenly withdraw if there are higher returns elsewhere. Then again, the move towards capital account convertibility being proposed could have important ramifications for the sensex and the economy.

The true nature of the impact of such forces and the implications of a possible hard landing or a soft landing is proposed to be discussed at this brainstorming session.

The series of sessions will be held once every two months and each time different themes will be chosen depending on their topicality and relevance for brainstorming by experts, the release added.

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