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TROUBLED TIMES LIKELY AHEAD FOR THE INDIAN GDP
The financial market is in a bad mood. Investor confidence is declining and foreign investments are moving towards China in spite of its slowed growth rates. The industrial revival is not as projected as the recent IIP survey indicates. The pace of reforms seems not enough and is short of the expectations. Agriculture will be showing poor performance because of the projected below average monsoon activity. Global depressed crop prices will be discouraging for agro based product exports (sugar for example).
Land, instead of a factor of production, is now a hot item on the political dinner plate.
The private sector participation in infrastructure enticed with the various versions of PPP is still hesitant.
Many forecasts are there placing Indian growth rate exceeding 7% in the current year but all these are based on the ‘potential’. Yes! But mere ‘potential’ is not enough by itself.