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Shankar Acharya: Reforms resurgent?

It's too early to assess their effect on real investment and output

Four weeks ago, on September 13, this newspaper published my column entitled “Macro signals flashing red”, which highlighted the continuing and dangerous deterioration in our economic performance with respect to economic growth, external sector imbalances, fiscal deficit, financial sector stresses, inflation and employment. As if on cue, that evening the government announced a Rs 5/litre increase in diesel prices and capped the number of subsidised LPG cylinders a household could receive at six per year. The next day the government announced a set of reform measures, including ...