Surrendering to price rise

The annual report card on the government’s economic management is out. It’s not a pretty picture. The economy has slowed to a growth rate of 6.5% in 2011-12, from 8.4% the year before. This is lower than the official projection in February that the gross domestic product would grow by 6.9% in the 12 months to March 2012. All spheres of economic activity are feeling the squeeze: farm and factory output grew at nearly a third of the pace in 2010-11. The famous resilience of India’s service sector is cracking too.

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