There has been a dramatic turn of events recently in so far as India is concerned;its fast transformation from a fairy tale of a success story, to a failing country has been too fast and too shocking. The country, which boasted of the second fastest growing economy in the world, seems to have fallen to a disgrace of declining GDP growth from 9.4% in Jan-March 2010 to 6.1% in Oct.-Dec. 2011;industrial production plummeting in terms of IIP from 5.3% in April, 2011 to-3.4% in March 2012; Net FII investment inflow drying up from $173.8 million in January 2011 to -10.7 million in May(21), 2012 with its exports spilling over to negative territory in March 2012 accompanied by record FDI outflow from a few million dollars between 2000 and 2008 to $3.1 billion in 2008; $ 7.2billion in 2009 to $10.9 billion in 2010. Let us not miss out on the double digit inflation, apart from the charge of policy paralysis against the Government.
And above all, Indian Rupee has nosedived by almost 20% in value in the last one year with what I would call, an uninhibited free fall almost on daily basis; and our Current Account Deficit has a yawning gap of $116 billion which as per Archaeoastronomy study likely to shop increase by a massive 40 % in the current fiscal with our forex reserves being below $300 billion.
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