Indian Economy:Transition to Take Longer Time

Indian economy is in a transition phase. After years of slowing growth coupled with rising fiscal deficiate and governments indebtedness the country witness a crises like situation in August 2013 when the rupee crashed and the soverign credit rating was on the verge of loosing its investment grade. It was no wonder that experts drew parellels with 1991. The change in the political scenario and policy making in 2014 was the key to pull the country out of immediate danger. This change in direction created a sence of celebrationparticullary on the Dalal street, which although typical, was somewhat premature. There is no doubt the economy has changed direction, but a number of hurdles including an unsupportive global economy and a weak monsoon have slowed down the process. The transition phase for the economy is likely to be longer than earlier anticipated.