With the drastic fall in stock markets and the current account deficit of the country rising to 5.5% of our Gross Domestic Product (GDP), it is being feared whether the road ahead is rough for Indian economy and its people. This has posed a very big challenge for the newly appointed RBI governor Raghuram Rajan.
The drastic plunge of Rupee which is now close to 62 a dollar and the rising inflation is breaking the back of common man and affecting the economy due to skewed balance between country’s imports and exports. Many experts are attributing this position to the corrupt political system and various scams.
Sources say that with the growth rate of the country now falling to less than 5 %, it now equals the growth rate of India which is the lowest in the last ten years and with fall in investors’ confidence, economists predict that India may be headed for worse which translates in low wages and higher costs in the coming months and definitely will be a nail in the coffin for UPA too.