Watching the economy

As we approach the end of another year, the economy is being buffeted by multiple challenges on several fronts. While some of these problems are of our own making, there are others beyond our control. On the growth front, even optimistic official forecasters, who were earlier predicting a growth rate of over 8.5%, are now admitting that growth will be only around 7%. The latest monthly index of industrial production indicates that growth in the industrial sector has actually turned negative. The slowdown was expected, the expected collateral damage arising from monetary tightening and rising interest rates aimed at curbing inflation.

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