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Few expectations from Manmohan?

Few expectations from Manmohan?
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First Published: Tue, Dec 02 2008. 10 27 PM IST
Updated: Tue, Dec 02 2008. 10 27 PM IST
New Delhi: With less than 100 days to go before the general elections the UPA government still has a lot to prove on the economic front. Though the government has been able to rein in inflation, a falling rupee, credit crunch and shrinking exports have taken the sheen off the 9% growth in previous years.
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So what can the government do? Experts say no ‘significant’ turnaround can happen in the coming three months. “If they (government) really have to take some steps then restoring domestic confidence and reviving domestic demand should be the key,” says Naresh Takkar, managing director at ICRA a credit rating agency.
Economist Bibek Debroy adds, “If one hasn’t done anything significant in terms of reforms for close to four and a half years, you don’t expect reforms to happen in the next 100 days.”
Cutting interest rates to revive domestic demand has not yet translated into easing of liquidity — neither for consumers nor lenders. And with the Prime Minister now holding the Finance Minister’s portfolio, many think the time for forward-looking reform is long over.
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First Published: Tue, Dec 02 2008. 10 27 PM IST