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Article: India goes slow. (economic growth is expected to slow in India after averaging 7% annually for three straight years)(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- November 22, 1997
CopyrightCOPYRIGHT 1997 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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THE elephant is growing tired. India's economy grew by an average of 7% a year for the past three years. This encouraged Palaniappan Chidambaram, the finance minister, to announce in February a budget in which tax cuts set India on the path to become a fully fledged Asian tiger by stimulating hoped-for growth of 8%. Instead, the economy's rate of growth has slowed, perhaps to less than 6% this year. Businessmen have reacted hysterically, crying recession and lobbying for devaluation, tariff protection and cheap credit. Although their alarm is overdone, the slowdown does raise a key question: is India incapable of sustaining high growth?
The growth spurt was led by ...