The prices are high. Rupee rate is low. Investments are the worse they could ever be. Let’s face it, it’s a crisis. Let’s scrutinize the situation.The economic crisis had befallen upon the whole of Europe a long time ago. Obviously, the whole world was adversely affected by it. However India, had managed to, more or less distance itself from the crisis. And was growing at a rapid rate! It mainly began after 2003- 04, where in the growth rate shot up from 3% to 5-6 % to directly 8- 9%. However, now, (if you want to believe the government), the crisis seems to have caught up with India. The GDP is expected to grow at 7% in the year ending 2012 which is significantly lower than the 8.4% in year 2011.
The manufacture growth reduced from 9% in 2011 to 3% in 2012. The trade deficit has increased to 10.6% of GDP(by 56%) between 2010-2011 and 2011-2012. The foreign investors, who used to consider India as one of the prime investing locations have been greatly discouraged and are gradually retreating, mainly due to the collapsing currency. I can just go on and on. But I don’t want to focus on the crisis, but the cause and the solution.
