Pranab’s Dr.Singh Momment

May 25, 2009 at 3:38 pm | Posted in Lifescape | Leave a comment
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Pranab Mukherjee, Indian politician, current F...
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The Congress victory has generated immense optimism for the outlook for the economy. How should the new finance minister, Pranab Mukherjee, take advantage of this? Take stock of where we are in terms of business cycle conditions and then change private corporate sector’s mood. Just as Manmohan Singh did in 1991.

The most important determinant of business cycle conditions in India is private corporate investment.

The decline of private corporate investment back to values like 5% was the essence of the business cycle downturn of 2001-2002. After this, we have seen an immense expansion of private corporate investment—all the way to 16%. This is the essence of the benign business cycle conditions of recent years…


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