Friday, August 14, 2009

India aims for robust GDP growth despite drought

The Commerce Minister has opined that we can maintain our GDP growth in the current year at the same level as the previous one. Good to know that; the only problem is that the entire article contains not a single factual argument that supports his statement. Things like
"Our domestic demand and consumption is strong. Fundamentally, our economy is strong"
"India keeps substantial buffer stocks of food grains after our two successive years of buffer [Ed: I think he meant 'bumper'] crops. We have enough of what we have to sustain availability of food"
"We are not overlooking the challenges that we have. At the same time, we are not overwhelmed by them...we hope that this situation will not be there when the next sowing season comes in January"
are not exactly confidence-inspiring, absent any convincing arguments.

I came across this piece immediately after reading an investment advisory about the impact of the drought on the economy -- the detailed analysis it contains shows up the hollowness of these statements even more starkly.