Current State of Economy

While the general sentiment in India is highly bullish, I am of the view that the Indian economy is not going to barge out of the cage and shoot up with growth. We still have the major issues of inflation and job creation that need to be handled. High unemployment and inflation would be one of the toughest domestic challenges facing the government. Getting people back to work will be high on agenda of the Government for its long term prospects. Creating jobs is critical to sustaining the economic recovery when government stimulus fades. I do not see much job creation happening in the manufacturing or construction sector, services sector may see some stabalisation. While layoffs may not be there but new hiring is also not there and that shows that we are in for a very bumpy recovery. I think RBI should not raise the interest rates in the 1st quarter of 2010.