Hard Questions, Soft Answers
Despite the stimulus packages, why is there continuing gloom?
They may take over a year to show impact; despite the RBI directive, banks aren't lending; there’s fear of further global shocks.
Will Q4 of 2008-09 fiscal be better than the dismal Q3?
Much depends on agriculture as export and industrial sectors still hurting.
Why is government optimistic of 7% growth in 2008-09?
Betting on consumer spend, thanks to corrections in realty prices, and money in hand from farm loan waiver, Pay Commission bonanza.
How will election expenditure impact the economy?
Will put more money into the system and boost transport, travel and publicity.
How soon will the economy revive?
Tough to say, but possibly by September '09.
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There's uncertainty as to when the stimulus packages, including the tax cuts, will start to show on the economy.
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