The lasting political stalemate will remain until the 2014 general elections, affecting India’s economic outlook.
Communal violence, Maoist insurgency and unresolved conflict with Pakistan over Kashmir constitute India’s main security risks.
India’s weakened economic momentum partly results from cyclical factors and external shocks, namely the global slowdown, high inflation – particularly oil prices – and the eurozone crisis. But a deteriorated business environment and lack of structural reform further penalize the economy and threaten growth potential.
Poor public finances compel the general government to fiscal consolidation, depriving it from a major policy tool.
DETAILED ANALYSIS OF INDIA PREPARED BY ONDD PLEASE FIND >> HERE <<