The Four Deficits That Caused Busi­ness & Econ­omy to Im­plode

India Today - - COVER STORY -

1 Gov­er­nance Deficit

Scams in­volv­ing po­lit­i­cal kick­backs like CWG, 2G, Coal Gate emerge Scared of be­ing pros­e­cuted even for the bona fide de­ci­sions they make, the bu­reau­cracy freezes

2 Growth deficit

As cases of cor­rup­tion pile up, the babus balk mak­ing the wheels of pol­i­cy­mak­ing stop. With an un­sta­ble ex­ter­nal en­vi­ron­ment, growth slows

3 Trust deficit

Frus­trated, In­dia Inc writes open let­ters to the gov­ern­ment about cor­rup­tion and gov­er­nance deficit. The gov­ern­ment files cases against the who’s who of In­dia Inc. The re­la­tion­ship be­tween busi­ness and GOI breaks down

4 The com­ing deficit: 2014

With elec­tions around the cor­ner, the gov­ern­ment will be risk averse, es­pe­cially with de­ci­sions that have po­lit­i­cal con­se­quences. That’s bad news for an econ­omy stuck in a rut

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