Indian economy is at cross roads today when its suddenly being compared with 1991 situation when India had to pledge Gold to borrow foreign exchange. The GDP growth rates have dipped down to 5.3% (the lowest rate in last 9 years) with high inflation rates at 7.4% , raising an unprecedented spectre of stagflation in India. The current account rate is at 4% which has been one of the highest ever and Rupee has depreciated by > 10% in the year.
Why and how did we reach this situation? Should we "blame it on Rio" as the govt. is attempting...
