For a long time, it was rate cuts. Now it is a relatively modest half trillion fiscal splurge. Neither will give the emaciated tiger a full meal. Reform is that large sambar deer it craves for. 2. It is undeniably true that the recent flurry on restoring the economy to health comes not a day too soon. Ideally, the process should have started in right earnest in May 2014. The problems that are weighing us down – twin balance sheet fatigue, falling capex, a troubled power sector – were recognisable three years ago and none of them has fixed itself; some have grown larger. 3. The world is doing much better. Europe is growing a shade faster than America. Exports are perking up for our Asian neighbours. The Fed will start shrinking its balance sheet and raise rates soon. Commodity prices are still soft. We have no reason not to be growing at least two, possibly three, percentage points faster. India Inc should be invited to offer some good advice, with complete candour. Citius, altius, fortius is possible for India today.
via Embrace reforms: More than a stimulus, reversing economic slowdown needs factor market unshackling
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