India's Growth Story...during the last week there were some important decisions held in Indian Political Ministry in which one was making Mr.P Chidambaram as the finance minister of India who has rescripted the rules for elevating the economy...the initiatives will include disinvestment in infrastructure and power and energy .There have been power projects totalling 18,000MW which are not getting executed and many more like that....they are facing
problems ranging from ranging from non-availability of coal to environmental clearance.
Coal India, which has near-monopoly over coal mining in the country, has been unable to increase production to keep pace with the rapid expansion in generation capacity, particularly by the private sector. Problems related to land acquisition have also hit mining.
other reason would be following global trends...
India need to follow its own path and not global trends...India should promote rapid urbanization and expansion of manufacturing.
The government is considering higher rural spending, a sugar export tax and zero import duty to mitigate the impact of a drought.Along with that India has the highest savings and investments rate in the world,projecting GDP at 6.5% for this fiscal. India still has some advantages, including the fact that it is starting from a low base, with an average income of $1,500. It's always easier to catch up from a low base, and some Indian states are indeed showing real dynamism.
Of the 180 economies tracked by the IMF, India ranked 29th in terms of its average growth rate in the 1980s, 27th in the 1990s and 26th during the last decade which is a proud fact.
:):)
