It is heartening to note the government has “taken note” of the negative outlook to India’s long-term rating by Standard and Poor’s.
There are two simple things the government can do to revive the bleeding Indian economy: stop interfering in the markets and end the dangerous efforts to create an entitlement society. Both processes are creating serious distortions in prices and incentives that are feeding into the downward economic spiral. The taste to interfere, however, is hard for the government to give up.
There is more pain ahead.
