Tweet

In a recent statement the Governor of the Reserve Bank of India stressed that on the demand side investment activity has been way below desired levels and that external demand has also weakened due to poor global growth. The Finance Minister managed to present a few days ago a responsible and fairly balanced budget 2013-14 and underlined the necessity to cut the country's fiscal deficit which should reach 4.8% of the GDP next year. The slowdown of the economy over the past decade is undeniable. Yet some experts note advance indications of revival. But in any case and in order to consolidate a growth which is expected to reach between 7 and 8% in 2014-15 the government will have to go further and deeper into its reform targets. Infrastructures projects first but also the retail sector require huge investments . After contradicting signals new rules will make easier to enter the indian retail sector. And the authorities should continue opening up other protected sectors. Now the biggest challenge to attract private money is to continue with the privatization of public companies. And it proves to be very difficult in an electoral period. Finally and above all the government in order to get India back on track must now implement the structural reforms which passed. It's really time to change gear.

Tweet