India should be prepared for a 2008-like or worse financial crisis going by the current economic trends and what we need is greater public spending.India cannot ward off the global economic recession by furthering neoliberal agenda.
Government’s hopes, that further liberalisation will attract foreign funds and provide an impetus for growth, are misplaced because the World Bank has warned that rich countries had little monetary or fiscal ammunition available to stem continuing recession. Despite this,the government appears all set to bring in financial reform legislations in the budget session of Parliament and plans to open up the retail sector to FDI soon after the five assembly elections. The need of the hour is massive public investment to build social and economic infrastructure while generating large-scale employment.The consequent growth of domestic demand in India is what that can sustain a healthy economic growth rate.
