The indian currency is not well, fiscal deficit is increasing, a government which is increasingly becoming populist, drying up of private investment....the question is whether India can return to a path of high growth
India needs to remove fuel subsidies: A liter of petrol in "world's largest democracy" costs somewhere around Rs. 78. To give a sense of this number, one should look at the poverty line, which is around Rs. 30 per day. Get more foreign investors in because they have done the country a lot of good.
The state is borrowing too much, crowding out private firms and keeping inflation high. There has been no reforms over the past few years. Foreign investors have been not adequately appeased which has made current-account deficit harder to finance, and the rupee has plunged.
Recently, financial services firm Moody's has that Indian economy is facing stagflation, where growth is slow and inflation high, and it has cautioned that the Reserve Bank cannot be too aggressive in cutting interest rates. As said by Moody's RBI has to be really careful about the interest rates..