India's economic troubles self-inflicted

India's economic troubles are mostly self-inflicted, resulting from policy paralysis and opposition to reforms - a situation that is unlikely to change before the general elections in 2014, says a report.
"That situation is unlikely to change until the 2014 general elections at the earliest,"

As growth has slowed, India's twin deficits have increased. The central government budget deficit increased to 5.9% of GDP last fiscal year and the current account deficit widened to 3.7% of GDP," it noted.
Foreign reserves remain quite high, at USD 292 billion, but have fallen by USD 30 billion since August 2011.
Although wholesale price inflation has declined, it too was high, at 7.5% year-on-year.
 
Top