The Global Analyst - September 2013
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Amid all the debates of whether India’s economy is facing a 1991-like crisis or not, what the country’s policymakers is forgetting to understand that it’s not the time for making some announcements here or there or planning some piece-meal solutions, but for some real action. Time is running out for the country’s crisis managers. Their jobs are cut out: deficits are needed to be reined in quickly, while the domestic demand needs to be given a big boost. While there is no denying the fact that attracting greater portfolio inflows and FDI is crucial in the government’s efforts to stem rupee’s dramatic fall against dollar, what is equally important to note is that this could also be utilized as an opportunity to kick-start exports. Can the government get into the action mode instead of calming those drawing similarities between the current situation and the pre-reforms crisis?
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