Growth-killing monetary policy

First, let’s remember why manufacturing sector growth is important: it’s the only real way to move people out of agriculture, as so many want to; and India’s overall growth has been diminished and unequal thanks to the sector’s stunting. Now, let’s look at the latest figures, for June 2012, on industrial growth: the manufacturing sector that month was 3.2 per cent smaller than it had been in June 2011. This isn’t a “slowdown”, such as overall GDP is facing. This is an existential crisis.

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