Friday, April 20, 2012

There is slowdown in economic activity .Will India be replaced by Indonesia in BRICS countries?.These are the common points discussed in hush hush tones in economic circles. But one thing is certain that there is paralysis in  major economic reforms implementation.Going by the statement of Mr.Kaushik Basu,Chief Economic Adviser to the government of India that major economic reforms has to wait till 2014 and there is slowdown in decision making makes everyone worry. The government cannot brush aside the reality that FDI has fallen below 50% , inflation is still high agricultural production has dropped  and prices have not fallen to reasonable levels.There is one more oil price hike in the offing which will have spiralling effect on the prices.The government cannot take shelter under the coalition compulsions and they are not getting the support they expect from the coalition partners.


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