The Chief Economic Advisor to the government Dr V Anantha Nageswaran exuded confidence about India achieving a hat-trick of 7% growth in the current financial year. An economy is a system of mutual dependencies, and so exogenous shocks (usually in the form of fiscal and/or monetary stimulus) are sometimes needed to lift it out of a morass. Sustaining performance over long periods (especially in times of uncertainty) has been elusive, but this occasion is probably different. As he wisely put it, the Indian economy has always faced this issue of running out of breath and then (after some years) running out of steam. It is the period in between the two that needs maximization.
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