Time for stimulus, not cutbacks

The signs of a slowdown are here; private consumption and investments are slated to take a hit. If a fiscal stimulus saw us through the 2008 crisis, a similar effort could see us through the current situation. What do the following news items have in common: the steady build-up in core inflation to near double digits that may force the Reserve Bank of India to stick with its rate hikes; a deteriorating power situation (as if it wasn't bad enough) with coal shortages prompting northern and eastern states into heavy overdrawals; and advance tax payments by Indian large firms that rose a modest 10 per cent in the second quarter ending September, against double that in the first quarter?

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