IIPM PUBLICATION
The
Economist has already thumped-off India’s above-ordinary dependence on and support to the services sector, for one, as characterising a typical “loose monetary and fiscal policy” system, capable of directly impugning the sustainability of high growth rates. All India Kisan Shabha GeneralSecretary, K. Varadha Rajan, in a tete-a-tete with B&E, accuses policy makers with an acerbic, though cliched, query, “Can a country with disproportionate development stand on its feet?” These ‘disproportionate’ doubts arise mainly because of the poor performance of the agriculture sector – the farm output grew by a mere 1.7% during the quarter as compared to 4.1% in the same quarter a year ago. Having agriculture as India’s Achilles’ heel is dangerous, as that perhaps has the gravest potential to slow India’s economic momentum, especially with a large chunk (a whopping 43%; NSS 2004) of population surviving on agriculture, and with a larger 66% living in rural India. In addition, the non-plan expenditure on public distribution system would further add to the pressure on the economy. Worse, sooner rather than later, the government will also be forced to revise the interest rates upwards to control the demand push inflationary pressures.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
The
Economist has already thumped-off India’s above-ordinary dependence on and support to the services sector, for one, as characterising a typical “loose monetary and fiscal policy” system, capable of directly impugning the sustainability of high growth rates. All India Kisan Shabha GeneralSecretary, K. Varadha Rajan, in a tete-a-tete with B&E, accuses policy makers with an acerbic, though cliched, query, “Can a country with disproportionate development stand on its feet?” These ‘disproportionate’ doubts arise mainly because of the poor performance of the agriculture sector – the farm output grew by a mere 1.7% during the quarter as compared to 4.1% in the same quarter a year ago. Having agriculture as India’s Achilles’ heel is dangerous, as that perhaps has the gravest potential to slow India’s economic momentum, especially with a large chunk (a whopping 43%; NSS 2004) of population surviving on agriculture, and with a larger 66% living in rural India. In addition, the non-plan expenditure on public distribution system would further add to the pressure on the economy. Worse, sooner rather than later, the government will also be forced to revise the interest rates upwards to control the demand push inflationary pressures.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
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