India's economy in reverse mode: US daily
India's economy is heading into a deep slump, a leading US daily says, calling Indian Prime Minister Manmohan Singh "an ineffectual leader without much authority".
New York: India's economy is heading into a deep slump, a leading US daily says, calling Indian Prime Minister Manmohan Singh "an ineffectual leader without much authority".
"India's once booming economy is sliding into a deep slump. The country grew just 4.4 percent this summer, a far cry from the 7.7 percent average for the past decade," The New York Times said in an editorial Sunday.
The report went on to say that unlike other growing economies which are facing the economic downturn, most of India's problems have domestic causes, which need to be effectively tackled by the country's government.
"Like Indonesia, Brazil and other developing countries, India has been hurt as investors have moved money to the US to take advantage of the prospect of higher interest rates. But most of India's biggest problems - like its high inflation, which was nearly 5.8 percent in July and has been rising partly because of the falling rupee - have domestic causes.
"Until the coalition government led by Prime Minister Manmohan Singh reforms the country's economy, India will fall far short of its potential," it said.
The editorial also slammed the country's UPA coalition government for its involvement in various corruption scandals and for its mismanagement in dealing with large infrastructure projects.
"In the nine years that the coalition government has been in power, several ministers have resigned in corruption scandals; large infrastructure projects have been delayed by mismanagement; the government's budget deficit has ballooned, thanks to wasteful spending like subsidies for diesel fuel; and politics have thwarted reforms in labour and education," the daily said.
It further blamed the Congress party for showing little concern for India's ailing economy.
"Manmohan Singh has been an ineffectual leader without much authority. The real power is held by his political patron, Sonia Gandhi, who leads the Indian National Congress party, which has expressed little concern for the country's ailing economy," The New York Times said.