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2014 is definitely a year to watch out for especially for those who have a kept a keen eye on Indian markets and have wondered the fate of the Indian Rupee.
Well, amidst all the economic mayhem, 2014 is also important politically.
Reason: it’s the election year. Economics has always been a hostage to many political gimmicks and unfulfilled promises by the party that comes into power. 2014 is, however, a bit different than any other election year held before. One big difference is that whichever party wins, will either bring very little change or will bring a lot of change. This is because India is going through an economic reform process. The central bank of India (Reserve Bank of India) has been making changes in repo rates in installments making interest rates fluctuate, something similar to what Federal Reserve did in 2008. Investors need to understand that the ‘ruling party’ or even a prediction to which party will form the government in 2014 will have an effect on the markets. This holds true not only for Indian investors but all those NRIs who are looking to invest in the Indian markets in 2014.