Friday, July 20, 2007

Indian govt's antipathy towards economic growth will result in slow down

Despite what Indian finance minister will want us to believe, largely the present govt in last 3 years have pursued regressive policies, that will not only erode the gains of reforms initiated by last govt but will also create new bottlenecks in future.

Public sector reforms have come to a stand still. Infrastructure development is no longer a priority. Political impact of inflation guides the monetary policies and pressure on private enterprise to tow govt's populist social agenda is on rise (compulsory affirmative action, push to regulate executive pay packages etc.).