As the uproar over corruption scandals continues during the monsoon session of parliament, policymakers would be wise to take a good look at the developed world economies.
After an embarrassing showdown over raising the debt limit, prospects for the US economy are becoming very uncertain. With political gridlock continuing till the elections in 2012, chances of new growth boosting measures are close to zero.Any possibility of rapid growth for the US in the next 2 years looks very unlikely now. Meanwhile, in Europe the debt crisis is now threatening to engulf Italy and Spain.
There is hardly any encouraging news from the western economies, which are India's biggest export markets.At home, signs of the slowdown are becoming increasingly evident. On the brighter side, western companies may seek to outsource more of their work overseas to countries like India. Commodity prices may decline with a slowdown, helping the government in it's fight to bring down inflation
Along with efforts to strengthen the safety net,lawmakers should make a big push to kick start investments in Infrastructure. It would contribute handily to growth. Apart from improving overall living conditions it would also provide badly needed employment to the vast masses of people who need it.
After an embarrassing showdown over raising the debt limit, prospects for the US economy are becoming very uncertain. With political gridlock continuing till the elections in 2012, chances of new growth boosting measures are close to zero.Any possibility of rapid growth for the US in the next 2 years looks very unlikely now. Meanwhile, in Europe the debt crisis is now threatening to engulf Italy and Spain.
There is hardly any encouraging news from the western economies, which are India's biggest export markets.At home, signs of the slowdown are becoming increasingly evident. On the brighter side, western companies may seek to outsource more of their work overseas to countries like India. Commodity prices may decline with a slowdown, helping the government in it's fight to bring down inflation
Along with efforts to strengthen the safety net,lawmakers should make a big push to kick start investments in Infrastructure. It would contribute handily to growth. Apart from improving overall living conditions it would also provide badly needed employment to the vast masses of people who need it.
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