Disappointed with the BRICS3 min read 02 May 2012, 08:24 PM IST
Disappointed with the BRICS
Why don’t we have the 9%-plus annual rates of growth we saw during 2004-07? We all know the answers, don’t we? The policy paralysis of a lame duck government bears a large part of the blame, interest rates are too high, the government’s fiscal deficit is a scandal, too much is spent on populist programmes, the current account deficit is not sustainable and political uncertainty is a bugbear. It’s undeniable that all these factors have hobbled growth. The International Monetary Fund (IMF) predicts that gross domestic product (GDP) growth this calendar year for India will be a mere 6.9%, a far cry from the 9.99% notched up in 2007.