After surviving the economic nemesis bravely, Indian economy is finally recuperating speedily from the setback that almost tarnished its image at the global level. Though, we are nowhere near the recession period, but even then things are yet to come under control. Although, after hovering in 11 to 13 percent mark for quite sometime, inflation has come down into single digits, but even then much-anticipated respite has failed to satisfy the thirst of normal customer base who are clamouring for more and more relief packages like this. This has certainly multiplied the problems for the Central Government which presently is looking completely clueless in tackling this issue. Though the Finance Minister has repeatedly taken initiative to bring things under control, whether be it by infusing confidence through speeches or by effecting cuts in CRR or repo rate, but the fact remains that his policies have fallen short of being effective. Facing the back of walls, Mr. Chidambaram knows that the issue of economic crisis can prove to be severely detrimental for their future political prospects, but unfortunately everything he has done to ensure the well being of the economy has tanked till now, bringing wrath to him and his party.
Although after the introduction of capital inputs into the economy, things have normalised to a large extent, but the fact remains that people are yet to feel that way. To add to Mr. Chidambaram's woes, the respite from inflation proved to be a superficial one for a majority of people as there was hardly any change in price levels of seasonal and daily commodities. Moreover, this surprising slump was due to the reduction in the price levels of the global commodities. Even the volatile stock market hasn't responded well to the immediate measures employed by the RBI, which itself tells you the whole story. Overall although the situation is looking a bit under control, but indeed it is far far away from the word 'stabilisation'.