Today's Coming Crisis Movie

Thursday, April 14, 2011

Inflation headwinds batter rising India: Same story, different part of the world

Rewind to 1991 and you see India buried under an acute debt crisis that forces the nation to mortgage its gold reserves to pay for imports.

Twenty years later, the South Asian nation has risen as an economic powerhouse.

India's turnaround came on the back of reforms it unleashed in 1991 that dismantled a plethora of controls blamed for holding the country back.

"In these past two decades, we have seen an acceleration of India's economic growth. We have seen the unshackling and unleashing of the animal spirits of Indian enterprise," said Prime Minister Manmohan Singh at an award ceremony last month.

"We have seen the emergence of new businesses. We have seen the empowerment of a new middle class in our country," said Singh as he spoke about the 20th anniversary of liberalization that he had authored himself as the nation's finance minister. (read more)