The Indian economy has been growing at a phenomenal rate over the last few years. It is expected to maintain that rate in the near future too, which would make it an economic superpower in its own right. While this turnaround in India’s economy is a source of celebration for the world community, there are some genuine reasons for worry as well.
The foremost of the concerns is inflation. The high growth is matched by a high inflation inducing confusion in the minds of consumers. The rising prices of commodities had sapped much of the initial optimism.
The value of the Indian Rupee against the U.S. Dollar is presently unfavorable. The economic boom of the last few years that had created new markets for the disposable wealth of the affluent middle class is also accompanied by high interest rates. Although the government’s decision to increase interest rates is done to balance the welfare of the poor . . . Read More