"NO NOT YET", Our Economies policies are crippling our growth. And to add one it is the latest report by global credit rating agency S&P; , it downgraded India's rating outlook from stable to negative . i.e from BBB+ to BBB- , they clearly said that our low growth rate , high fiscal deficit , high inflation , and widening CAD (current account deficit) in the prevailing economic environment are the main cause of concern..
Indian policies makers inability to work toward key reforms and initiate cut down in the y-o-y increasing subsidies are the key parameters , on which our economic advisers and experts need to focus.
We must keep in mind that , policies are not made to please anyone , but to bring change.
When the Chief Economic Advisor was addressing an academic forum a few days back he said something to the tune of 'No policy initiatives can be expected before 2014' It was implied that he was talking about the general elections and in some manner speaking about the problems of indecisiveness the current government is facing. With the opposition hell-bent on not co-operating on reforms like the GST and uncooperative allies blocking major reform initiatives like the FDI in retail, the current government is in a fix and just doesnt have the requisite numbers to bring about any far-reaching economic reforms. There is talk about how diesel should be de-regularised, how the coal monopoly of CIL should be done away with, and how regressive tax laws such as retrospectively taxing deals like the Vodafone case should be done away with. But amidst all these talks no result is forthcoming.
Further, the government is prematurely trying to convert India into a welfare state, and is treating welfare and economic reforms as a zero sum game which is not required. We can have both simultaneously, because funds for welfare schemes will only be raised by economic reforms. Thus, the urgent need of the day is to reduce the fiscal spending by means of subsidy reduction in fertilizer, food, and fuel which will in turn free up funds for the industry leading automatically to higher economic growth and reduced inflation.
As we move forward towards achieving a super-power status in the world it is important to bring about reforms that will propel us forward and let us have a say at the international table, a say that was ours in the ancient past and that will be ours again by the end of this century.