The Hindu Business Line : Feel-good factors or fundamentals?

This refers to "Economics or emotions, the poll toss-up" (Business Line, January 20). The `feel-good-factor' and the theme "India shining" seem to have been created by the politicians to suit their selfish ends. True, the bulging forex reserves, which have exceeded the $100-billion mark and the soaring of the Sensex beyond 6000 have added to the growing economy of India, but the rate of growth is still below the expectation.

India and China started their economic reforms in the early 1990s. But what has India achieved so far? India's per capita GDP, which was $331 in 1992, grew to $477 in 2001. In the same period, the Chinese per capita GDP surged from $426 to $878. In the 1990s China grew at the rate of 9.7 per cent while India grew at 5.9 per cent.

Clearly, the rate of growth of India's economy is very slow. The high rate of unemployment and poverty is the testimony to the fact that the Indian economy is still in its infancy. Instead of being satisfied with the present growth of economy, the Government should explore ways and means to accelerate the economy so as to alleviate the high rates of poverty and unemployment.

C. Ramesh

Keeramangalam (TN)

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