Singh’s sermons on economy

I believe this year, growth rate will be about 5.5 per cent,” Prime Minister Manmohan Singh hoped in his presentation on the state of Indian Economy in the Parliament on Friday. Portrayed as a man who speaks less, very feeble and whose murmur is difficult to understand in one hearing, Manmohan clarified his stand, for once, at length the reasons for the economic crisis and rupee fall and sought the support of one-and-all at this hour of crisis.

He admitted honestly the flaws in the system and pleaded with his opponents to join him in his endeavour to put back the economy on the fast track. He agreed that, “growth in the first quarter of 2013-14 may be flat, but when the benefits of good monsoon is realized the economy would pick up”. Which means the limping economy may have to wait for the fruits of ‘good monsoon’. Although theoretically Manmohan’s argument has enough strength, will India is capable of realizing the monsoon benefits? One has to wait and watch. However, the opposing schools of economists express ‘no hope’ on his statement; they argue that the economy has already entered the recessionary curve and expected to engulf the entire Asia in the next one year.

They also predict that India’s GDP growth rate may even come down to 3 per cent, from the present level of below 5 per cent. Again, Manmohan comes with a hope saying that India has enough energy to put the economy back on the realms of high stable growth of 6 to 8 per cent, in the next two to three years.