Sunday, November 16, 2008

Is Indian economy fundamentally sound?

Gautam Chikermane
November 16, 2008
How often have you heard these lines? "The Indian economy is fundamentally sound. Our banks are safe. Our economy will continue to grow. It may grow slower than last year but it will still be one of the world's fastest."
Following matters of economic policy as a profession, I have heard these or similar sounding words more often than ever during the past two months. How is it, I had been wondering, that when the whole world is collapsing, Indian policymakers can indulge in such talking up of economic sentiment.
At Planning Commission Deputy Chairman's late-night briefing in Washington DC, I had to get it out of my system. Why, I questioned him, do India's top three economic policymakers --- Prime Minister Manmohan Singh, Finance Minister P. Chidambaram and Ahluwalia --- keep giving us this one statement whenever we express any concern about the global meltdown.
Blog in, November 16, 2008

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