ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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The Economy and Political Stability

THERE is a view gaining ground that the Indian economy is basically sound and that if its growth potential is not being fully realised the reason is to be found in the prevailing political situation. The relatively large foreign exchange reserves and stocks of food- grains are adduced as evidence of the strength of the economy. It is argued how in the past shortages of foreign exchange and food had repeatedly emerged as the major constraints on the economy, coming in the way of higher investment and more rapid growth. The economy, it would thus appear, is at last rid of these long- term constraints on growth. It is also pointed out that the overall rate of saving has been quite satisfactory in the last few years. If, nevertheless, the level of planned investment has been nothing much to write home about, if growth of industrial production has been relatively tardy and if now inflation has been added to the list of problems facing the economy, the responsibility is sought to be pinned on the indecision and wrong decisions of the political leadership and its inability to impose a minimum level of 'discipline

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