Economy watch

International coal prices

Status: USD 71 per tonne as on October 8, 2007.

Impact: Soaring coal prices will impact industry, especially those dependent on coal-fired power. This will indirectly put pressure on all companies. In fact, rising prices make a strong case for trying out alternative sources like LNG (Ratnagiri is a classic example), renewable sources or even nuclear energy.

FDI Inflows

Impact: Rising FDI augurs well for the economy as foreign direct investment is not only a stable source of foreign exchange (unlike FII inflows, which are regarded as hot money), but also goes a long way in improving the investment climate in the country.

Compiled by Anand Adhikari