Friday, December 14, 2012

Poor economic growth due to diminished space for policy action


According to the government data, India's economic growth fell in the second quarter to 5.3% compared with 5.5% in the previous quarter, underscoring the urgency of implementing politically difficult reforms to spur a revival in Asia's third-largest economy.

The world economy is going through the fifth year of sub-normal growth this year and there’s no economy, developed or emerging, which has not been affected. Emerging markets such as India have been constantly urged to grow faster than the rest of the world economies, even though the economic problems faced by the countries are the same. If you thought India has a problem, look outside, Raghuram Rajan, chief economic adviser to the Finance Ministry, said at the Delhi Economics Conclave in New Delhi.

Finance Minister P. Chidambaram, who gave the inaugural address at the Economics Conclave in New Delhi, reiterated Rajan’s concerns about emerging economies, and blamed diminished space for policy action as the main reason for poor economic growth. The government plans to take more steps in the near future to revive the economy.

Read lot more in Rubber4U – 15th December 2012 issue

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