Manmonhan Singh team which has been facing unrelenting question about country’s financial health received a shot in arm from one of the major financial institutions, ADB, about country financial condition. ADB described India’s economy as one with resilience amid global economic downturn. This will help government to ward-off questions relating to economy which government is finding hard to explain.
On the other hand, leading financial rating firm S&P has concluded that Indian economy will grow somewhere between 5.8% and 6.3% in 2009. This is much below the continuous claims of 7% growth by the government. S&P also forecasted that India will be on path of recovery by September this year, if economic scenario doesn’t deteriorate further. This is beyond the expectation and mark set by the government which wanted to reap the benefit of economic recovery during parliamentary polls this year.
Government is facing increasing number of questions for its economic mismanagement. Though, it expects last year’s farm wavier and pay-commission hike, which was not accounted in budget, to go down well with voters. But, opposition is already making case for financial negligence and with economic recovery would not happen as timed by the government; it would be tough for government to use this bait for voters.
On the other hand, leading financial rating firm S&P has concluded that Indian economy will grow somewhere between 5.8% and 6.3% in 2009. This is much below the continuous claims of 7% growth by the government. S&P also forecasted that India will be on path of recovery by September this year, if economic scenario doesn’t deteriorate further. This is beyond the expectation and mark set by the government which wanted to reap the benefit of economic recovery during parliamentary polls this year.
Government is facing increasing number of questions for its economic mismanagement. Though, it expects last year’s farm wavier and pay-commission hike, which was not accounted in budget, to go down well with voters. But, opposition is already making case for financial negligence and with economic recovery would not happen as timed by the government; it would be tough for government to use this bait for voters.
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