Indias Economic Crisis: Nature and Remedies
Indian economy has been facing a major economic crisis and the situation has become quite serious after August 1990. The main elements of India’s economic crisis are deepening foreign exchange crisis, growing fiscal imbalances, increasing rate of inflation, slackening of overall economic growth and deceleration in industrial growth. An attempt has been made in this paper to examine these elements and also analyse India’s macroeconomic strengths and weaknesses. The paper also examines critically the policy prescriptions recommended by the group of Left economists to deal with the present economic crisis. The concluding part of the paper presents the author’s views on the main ingredients of macroeconomic strategy to deal with the short term as well as long term aspects of present economic crisis.
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