Indian Economy Situation Similar To 1991 – No Easy Solutions For Incoming Govt

Very relevant in today’ time…

Economics And India

Indian economy grew strongly till 2007-08 and then sputtered

Since the initial set of reforms in 1991, Indian economy has increasingly dependent on the global economic scenario in past 2 decades. From 2003-08, Indian economy grew at a strong pace primarily assisted by growth in global economy and liquidity flows. Low inflation levels during the period and focus on lower fiscal deficit in early part of the decade ensured that the country had fiscal stimulus measures in place when the economic crisis of 2008 struck.

image042image044

The crisis resulted in global economy slumping which had a similar effect on India. Thereafter, in order to boost growth, Indian government embarked on a fiscal stimulus package which resulted in economic growth going back to ~ 8-9% by 2011. This also resulted in significant increase in fiscal deficit from ~ 3.5% in Fy2008 to ~ 6.5% in Fy2009.

image046

However, not removing the extra stimulus…

View original post 2,758 more words

Advertisements

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s