GROWTH PARALYSIS

                          Alarm bells started ringing but sound was not from the clocks, instead it was the headlines of all the news channels that caught my ears early in the morning. GDP data plunged to nine year low and Dollar was hovering at an all-time high of 56.52. Indian economy being called as 'gasping elephant' is clearly in a downward trend after fourth quarter data was released by Central Statistics Office.

                         Despondency in the market is such that no big investment is making news, although coal scam of 1.8 lakh crore is much more in talking. Market experts are foreboding 1991 crisis in the current scenario and the protagonist in that play, currently PM, is again at the center of media attention. This time people are expecting stronger reforms and that too, before any other scam bubble-out in the media. Manmohan Singh's stern statement of 'quitting public life' if found guilty doesn't guarantee any future policies in the bag.

                         Pressure on the government is clearly visible as it plans austerity drive by throttling non plan expenditure to less than 10%. It banned creation of new posts and holding meeting in five-star hotels besides curbing foreign tours. Only rosy picture which can be drawn here is that world market is also shriveling due to Euro-zone crisis besides international commodity prices, which are flat except crude oil.

                         Hour of need is to first knock out mawkish sentiments from the market by policy changes and reinvigorating all the stalled projects and ventures. FIIs which took out major chunk from the Indian market in last two quarters will automatically bring back money to the subcontinent once things look bright. With UPA completing three years and many not expecting another term for them, this is the time to act swiftly. Who knows, we get another surprise like that of 2004 general elections.