The perils of India's arbitrage economy

In my column titled “Muddling along is no longer an option” (October 17, 2012), I had underlined the importance of our governing elite openly embracing economic reforms rather than resorting to “reform through stealth” or “reform through crisis”. A couple of weeks ago, the Congress party leadership took some encouraging – though tentative – steps in this direction, providing long-overdue public support to Prime Minister Manmohan Singh’s recent modest policy measures such as welcoming foreign direct investment and reducing fuel subsidies.

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