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Growth of the Indian economy has suffered in the recent years as indicated by decline in industrial production, capital formation, exports, etc. Weakening of aggregate demand and decline in investment could be some of the contributing factors for this phenomenon. While the slowdown can also be attributed to global slowdown, a high current account deficit and gross fiscal deficit, and continuance of a high rate of inflation are some of the most worrying signs for the policy makers. Restoration of fiscal sustainability and macroeconomic balance through stepped-up reforms are some of the key issues that need urgent focus of the government.

iimb management review

Interview: Economic growth cannot be taken for granted: Need for urgent reforms an interview with Dr A. Virmani, Former Executive Director, International Monetary Fund and Former Chief Economic Advisor, Government of India