Eating My Words...

I published my first blog on Sep 19th. Amazing how three weeks have insanely depressed economic mood. While the first blog attempted to hold back negative sentiments by listing the positives of the economy in the face of an increasingly gloomy outlook, the last blog counts out the unsound macroeconomic fundamentals even as everyone is rushing to talk about how the economy remains strong.

Three weeks ago, commentators were talking only about inflation, high interest rates, and slowing industrial production to lower their growth forecasts. Growth forecasts are still being lowered, but now it is due to impact of global developments, rather than our own economic indicators. Well, we still have the high savings and investment ratios, the strong rural demand, and the government's high expenditures. But investments may be drying up in the light of the credit crunch, which is another factor that has taken a u-turn in the last three weeks. The fall of the rupee has hit crisis proportions, and FDI has become tremendously iffy.

I hate to talk about sneezing and colds when everyone else is doing so already. The whole purpose of this blog is to have a contradictory opinion. And therefore my opinion now is: GET THOSE REFORMS REVVED UP