Horrifying Fisc And Stubborn Poverty

If a poor country could learn to govern itself better, it could get all the funds it needs from the market, says Subir Roy

There is an element of unreality about the current economic situation in India. The government seems settled for a normal innings. The growth rate, after slowing down to around 6 per cent for a couple of years, shows every sign of going back to the 7 per cent level which was the great gift of reforms achieved for a three year period (1994-97). Business confidence is sky-high. Both the markets that create the feel good factor, stocks and real estate, are down but consumer confidence, reflected in spending, is coasting along steadily, if not riding sky high.

 

So who