There are cracks appearing everywhere. Even fissures at some spots. The world economy is in dire straits. Even the US economy is showing signs of strain. Europe, China and the Middle East have slowed down. Latin America is in trouble. North America is heading for trouble and India is trying to distance itself from the imminent trouble. We need to spend Rs.100 trillion over the next five years when we have spent just over Rs.75 trillion in the past 10 years. RBI is rapidly losing its headroom in kickstarting the economy as it continues to cut interest rates and inflation continues to be low.
India’s share in the world economy in the year 1700 was 24.4 per cent, which declined to 4.2 per cent in 1950. To recapture the glories of India, it had to be rebuilt. The next 50 years saw it decline to 3.1 per cent of the world income by 1973 and then post liberalisation in 1991, in 1996, it rose to 3.9 per cent of the world GDP. The ‘Infrastructure Sector’, as we know it today, was born in 2001 when the then Prime Minister Atal Bihari Vajpayee launched the Golden Quadrilateral project in order to kick start the Indian economy, which had suffered a series of jolts beginning with the Asian financial crisis of 199