The frightening fisc

I am not sure if this sounds scary. Certainly, the government doesn’t seem to acknowledge the enormity of the situation. But dark clouds seem to be gathering around India as its economy just about manages to wriggle out of a roller-coaster 2011. There isn’t one particular factor that threatens to test the crisis management skills of Manmohan Singh’s government. An interplay of several domestic factors and exogenous variables has started worrying many New York analysts tracking India. So far, this worry has manifest itself in the equity markets. A top-notch hedge fund manager, who was in India recently to study the situation on the ground and meet those at the helm of policy-making, said: “The equity market is like the public urinal. You eat and drink all kind of stuff. The distilled (sic) output that you get reflects the health of the economy.”

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