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Where is India's economy heading?

Ulrich Bartsch's picture

The India Economic Update 2012 will be discussed online.Ulrich Bartsch, the World Bank's outgoing senior country economist for India, will lead a 24-hour live chat on the World Bank India Facebook page. He and other experts will be discussing the Bank's latest India Economic Update. The chat will begin Wednesday, Oct. 10, at 4:30 p.m. India Standard Time (7 a.m. Eastern Daylight Time in the United States). Here, he provides a sneak preview.

India’s economic growth has slowed to a pace not seen since the beginning of the 2000s. At the same time, the current account deficit has reached a record high. We project growth in the current fiscal year to reach around 6%, a slowdown from the already low 6.5% growth in the previous year. This growth projection is predicated on an improving domestic and external environment, but the risks for a worse outcome are high.

On the domestic front, recently announced measures to reduce subsidies and boost FDI were important to lift sentiment, but investors are waiting for signals on other issues: the reform of direct taxes, the implementation of the long-delayed GST, and passage of the land acquisition and mining bills.

This India Economic Update also looks closely at two important topics:

-First, India’s Right to Education Act redefined how the goal of providing a high quality of education is to be understood in India. It is perhaps not surprising that the implementation challenges are huge and many-layered and spurred vigorous debates.

-Second, electricity utilities in many states are facing a financial crisis and will only return to financial health once they and policy makers focus on service delivery, tariffs, efficiency, and profitability.

Join the discussion here!

Comments

Submitted by Ram Bansal on
Under an indirect central rule of an Italian women, local interests in manufacturing sectors have been suffering heavily while foreign investments and manufacturers are having a field day in the country. As a result, economic condition of households, except those of corrupt politicians and government employees, have been in a shambles making people's lives more miserable day by day. This is not visible externally that counts on average growth only. Price rises of essential commodities spurred by those of industrial goods has been hitting the spines of common people since the economist Prime Minister under the Italian queen took over reigns of the country about 9 years back. This too helps politicians and government employees to continue their misrule over the common people of India. This may be understood in the light of the fact that the government had to revise wages of their employees with a gap of 6 months this year, leaving the 85 percent population of the country un-cared for. Over the years after independence, corruption by politicians has percolated down below through administrative machinery to veins of people corrupting their minds and breaking down their spirit of revolt against the misrule. Thus continues the misrule of the same selected politicians and their family members over the country since independence. http://articles-and-essays.blogspot.in/2012/09/foreign-direct-investment-fdi-in-retail.html Now, there remains no hope for a redemption of morality in the country, and more and more right thinking intellectuals would be leaving the country.

Submitted by Parash on
Dear Team, I think this is a great initiative. It is really interesting for me to have a dialogue on the vital subjects concerning my country such as economy, education and energy. I am really interested to know what others especially experts are thinking on these issues. I am currently studying international public management and earlier have studied and worked in South Asia. I am looking forward to asking some searching questions and getting some insightful answers and also sharing my own views. This is a great initiative !!! Keep it up !!! Best, Parash

Submitted by Anne on
Why is'nt India taking solar power seriously into consideration as Germany?.Emphasis on this facility can improve electricity and financial crisis in the country?

Submitted by Monoj Hazarika on
I am very optimistic about Indian economy....no doubt there will be several jerks; internal and external factors of diverse nature from natural to political and economic one will affect our economy in coming days. Our Right to education Bill needs to reshape it.....several pitfalls were already identified this needs to be tackled. More priority should be given in educating the masses in skill development and should be done in such a manner that caters to the needs of diverse group with different economic status. It is not necessary that we always have to follow others in this reagrd, we have to evolve our own means to tackle this.

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