I am surprised that so many people bashing for/against India without looking at the economical perspective. Each time there is some thing comes up, members start showing graphs of X, Y, Z countries for a,b,c.
Point here is at present the govt., especially RBI is more interested in containing the Inflation as compared to the growth; the reason being the rich are not greatly affected but inflation directly impacts the daily necessities of the poor in India. For your Information, the monetary policy set by the national central banks takes longer time than Fiscal Policies by government to have an impact and achieve the desired results. So, by just looking at the growth figures and high inflation, you can't just say India is going down or on the verge of collapse. If you even see the forecasts of some international organization the growth is still high in the future but has been delayed by an year or so because of the same reasons. The growth story for India is still intact, even if the govt screw up most of the time.
In regard to Bail-out, I don't see any reason of the bail out in the coming decades at least as it would not be needed. Other than that deficit has definitely grown and one of the reasons for the same is the delay of the government's divestment plans for the Govt. owned companies. Once the markets settled down in time, the process will have some impact on the deficit.
Even in case there is a need for bail-out of India, (just for the sake of argument) lot of organization and countries will be in the queue to do so and I do think China will be one of them, may be in forefront.
Point here is at present the govt., especially RBI is more interested in containing the Inflation as compared to the growth; the reason being the rich are not greatly affected but inflation directly impacts the daily necessities of the poor in India. For your Information, the monetary policy set by the national central banks takes longer time than Fiscal Policies by government to have an impact and achieve the desired results. So, by just looking at the growth figures and high inflation, you can't just say India is going down or on the verge of collapse. If you even see the forecasts of some international organization the growth is still high in the future but has been delayed by an year or so because of the same reasons. The growth story for India is still intact, even if the govt screw up most of the time.
In regard to Bail-out, I don't see any reason of the bail out in the coming decades at least as it would not be needed. Other than that deficit has definitely grown and one of the reasons for the same is the delay of the government's divestment plans for the Govt. owned companies. Once the markets settled down in time, the process will have some impact on the deficit.
Even in case there is a need for bail-out of India, (just for the sake of argument) lot of organization and countries will be in the queue to do so and I do think China will be one of them, may be in forefront.
