India

India’s economy had remarkably coped with the global crisis. However, in 2011 the growth rate of the Indian GDP slowed down and it was 7.2%, compared with a rate of over 10% in 2010. Among the factors that contributed to the slowdown there were: the situation of the world economy and international trade, high nominal interest rates (accompanying the Indian government’s efforts to combat inflation), increasing oil prices on the international market, given that India imports about 3/4 of its total oil demand and “political paralysis†at national level, due to disagreements between the political parties associated with a high level of corruption. The analysis concludes that several major risks continue to hover over the Indian economy. Most of them are internal and determined by delaying implementation of growth-oriented reforms, so necessary for a country with over 1.2 billion people and with a still underdeveloped infrastructure. However, the government’s room for maneuver is limited, as the budget deficit remains at the level of 7-8% in the long run, even if it has been decreasing. In this context, the paper underlines the need for a new comprehensive reform, in all sectors of activity.