Are India's glory days over?

Underlying the varied narratives on the Budget is the persistence of structural inflation, especially in food items. India has sunk in an inflation quagmire, moving from a ranking of around 60th until 2008 to about 120th since then, with lower rankings indicating worse relative inflation. Most analysts opine that growth will be slow, and agree that the revenue deficit needs to be reduced much more than in the Budget. The planned reduction of expenditure or increase in revenues needs to be something like five times the budgeted half a per cent of GDP to reduce the risk of the external account imbalance.

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