When the Indian Prime Minister Manmohan Singh had taken the additional charge of finance ministry, Indian economy had expected a lot from him. He is a financial reformist for India as He had done the economic reform in 1991 when he was the Finance Minister of India. But now as all the politicians are busy in presidential election so, the reform is expected after this election.
At this time whole world wants to come out with the effects of euro zone crisis. As central bank of china had cut the key rates so that more customers will become able to take loan from the banks. Inflation rate of China is also goes down which will help the government to give the stimulus package to increase the consumption.
But, for the Indian central Bank it is not an easy task to decrease the key rates because the growth for the March quarter is 5.3% where as the inflation rate of the of the country is 7.6%.For controlling the inflation some of the important steps must be taken by the central government . These steps may be to reduce the subsidy on diesel, make policy to increase the investment in FDI, control the fall of rupee etc.
On other hand euro zone is also trying flesh out plans to reinforce the single currency i.e. euro. Central to euro zone leaders’ plan is to give European Central Bank a central role in supervising banks’ which would then allow the permanent rescue fund.
So,A positive ray is seen ,When the whole world is trying to come out from the economic crisis and they are also busy to take steps to recover from this crisis according to economic condition of their countries.