How India Survived the Financial Crisis by Shashi Tharoor | Project Syndicate
Shashi Tharoor
Shashi Tharoor, a member of Indias parliament, was Indian Minister of State for Foreign Affairs from 2009-2010, and served as United Nations Under-Secretary-General from 2001-2007. In addition to his expertise in Indian foreign policy and global affairs, he is an author of literary fiction, whose novels, including Riot, The Great Indian Novel, and Show Business, explore the intricacies of Indian society and the hidden underpinnings of its everyday life.
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How India Survived the Financial Crisis by Shashi Tharoor | Project Syndicate
retained much of its momentum from preceding years. Moreover, Indias government adopted a pro-active fiscal policy, rolling out two rounds of stimulus packages. The authorities pursued pro-growth policies, including lower interest rates, expanded credit, and a reduction in excise duties. There are still challenges ahead. Reform is pursued hesitantly by a coalition government constantly wary of voters reactions. A decision to de-regulate petrol and diesel prices has sparked massive street protests and stoked fears of rampant inflation. Privatization of Indias bloated public sector (from massive coal and steel enterprises to the loss-making national carrier Air India) has been slow to get off the ground. And, of course, the persistent complaints of corruption and bureaucratic red tape have not faded with liberalization. The countrys infrastructure remains woeful, as any visitor flying into an Indian airport notices. Power shortages are frequent. Some 40% of the population still lives below a poverty line drawn just this side of the funeral pyre. Yet all these problems are being dealt with by a confident Prime Minister Manmohan Singh, who has steered the ship of state through some particularly treacherous waters. India is simultaneously tackling the hardware of development (ports, roads, airports) and its software (health care, education). Success will not occur overnight, but progress has been impressive and is continuing. In the last 15 years, India has pulled more people out of poverty than in the previous 45 roughly 10 million people per year on average in the last decade. The country has visibly prospered, and, despite population growth, per capita income has grown faster, and to a greater level, than ever before. The current financial crisis, far from prompting India to retreat, is an opportunity to safeguard and build on those gains. India can advance with the confidence that it can cope with the world from a very secure base. As the 2010 monsoon nourishes Indias plains, thats an encouraging place to be. This article is available online at: http://www.project-syndicate.org/commentary/how-india-survived-the-financial-crisis Copyright Project Syndicate - www.project-syndicate.org
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