Lack of trust.

"At $3.17 trillion, Indian economy is ranked behind the United States, China, Japan, Germany and United Kingdom." TOI. Merchandise exports were the highest in 2021-22 at $419.65 billion. Foreign exchange reserves have soared. "The country's foreign exchange reserves fell USD 2.238 billion to USD 570.74 billion in the week ended August 12, according to the Reserve Bank of India (RBI) data." moneycontrol. Food grain production has jumped, we are number one in the world in milk production and third in production of eggs. Milk prices are to rise by Rs 2 per liter. ET. "The price hike is being done due to an increase in an overall cost of operation and production of milk. The cattle feeding cost alone has increased to 20 percent compared to last year," said a statement from Amul. The RBI "in its August bulletin noted that inflation in July 2022 eased by 30 basis points from June 2022 and sixty basis points from the average of 7.3% for Q1 FY23, thereby validating its hypothesis that the retail inflation peaked in April in India." ET. Retail inflation fell to a five-month low of 6.71% in July. TOI. The All India Consumer Price Index (CPI) on base 2012=100 rose by 5.59% in July 2021, pib.gov.in. "The wholesale-based (WPI) inflation moderated to 13.93 percent in July as against 15.18 percent in June. The number has remained in double digits for the sixteenth consecutive month." ET. The WPI inflation was 11.16% in July 2021. ET. "But the fact is this is on a fairly high base," said Mythili Bhusnurmath. "We need to keep that caveat in mind. The other caveat really is that the May number for WPI, which came in initially at 15.88% has now been revised upwards to 16.63%." "High frequency indicators for the month of July suggest that India's economic activity is losing steam, with most showing a decline on-month basis, Bank of America (BofA) said." FE. "India's exports rose by 2.14 percent to USD 36.27 billion in July while the trade deficit almost tripled to USD 30 billion." ET. Imports shot up by 43.61% compared to July 2021 to $66.27 billion. "The fact that multinationals, especially in the manufacturing space like Ford, General Motors, Harley Davidson, among others, are reducing their exposure to the Indian market suggests a different narrative from the optimistic official statements of record foreign direct investment (FDI) inflows every year." FE. "Between 2014 and November 2021, as many as 2,783 foreign companies with registered offices or subsidiaries in India closed down operations, out of a total of 12,458 active foreign subsidiaries operating in the country." Why would anyone want to do business here when they are terrified of tax officials? "A partner with London-based Magic Circle law firm", on vacation in India, and his client "along with another senior partner from an Indian law firm, held the meeting in Singapore. All three then flew back to India." ET. Persistent high inflation, falling FDI and huge trade deficit means that the rupee must fall. Naturally, India's gold imports rose by 6,4% in the April-July period to $12.9 billion. ET. No trust in the government or the RBI. With good reason.