India's optimism despite rupee fall

Blufin, a financial information and analytics company, has predicted that the Indian economy will be able to weather currency risks and continue to grow in the next few months.

July 30, 2013 / 17:00 IST

Dinesh Narayanan/Forbes India

Blufin, a financial information and analytics company, has predicted that the Indian economy will be able to weather currency risks and continue to grow in the next few months.

The Indian rupee has fallen nearly 10 percent in the past three months against the dollar, triggering a crash in share prices and scaring foreign investors.

But Blufin's business cycle indicator (BCI) rose 5.6 percent year-on-year in June. Improving consumer demand and falling international prices of commodities helped, though some gains were eroded by a falling rupee.

The BCI has been predicting an economic revival since July 2012. BluFin's senior advisor Surjit Bhalla says the indicator is stable and "close to a tipping point". They expect first quarter GDP growth in 2013-14 to be around 5.3 percent and pick up to end the year at near 6.2 percent.

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