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Oct 15, 2011

Growing Indian Economy?

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The recession like situation across the globe has been alarming the countries towards the efforts to be taken to check their economy. The European crisis and debt crisis have not only tumbled the stock markets across the world but also rattled the confidence of even individual investors.

In the recession time back in 2008, the Indian and Chinese economies have absorbed the impact and bailed out from the clutches of the economic slowdown. But this time the recession will have equal impact on these biggest economies of the Asia too.

In India the situation has been more panic as here the headline inflation is near to double digit while the food inflation is also just adding insult to injuries.

Perhaps, the CAG report about the UPA government’s performance is rightly indicating about the role of the government in checking the economic shortcomings.

The hike in the petrol, diesel, LPG rate by the government forced the household to spend more on these comparing to previous prices. That ultimately has disturbed the budget of household. The soaring prices of vegetable, food items and other essential goods, proved that the market is now out reach of the common man – Aam Admi, the core agenda or concept of the UPA government.

Interestingly, the Planning Commission at a proper time redefined the meaning of the BPL (Below Poverty Line), which says the any person having 32 rupees to spend in a day for this entire family on food, clothing etc is a not a poor or would not be considered as under the BPL.

Reality always bits, as Rs.32 the cap to redefine is not sufficient for even one man in the capital or sub-urban areas in the country. Ironically, the government further hiked the price of fuel, which ultimately will have impact on the prices. And recently, the Railway too hiked the freight charges.

It is expected that good reached to market via, the train would be sold dearer following hike in the freight charges. However, it is clear that the market conditions are adverse to slide in the price. It can be expected that the Prime Minister may find some solution at the meeting today, to address the inflation and slowing down economy.


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