The Indian economy has been able to grow at a healthy 8% in the year 2009, next only to China. In fact even in the first half of 2009, only these two economies were able to be in the positive zone with reasonable stability. In the last two quarters the Indian economy has been able to grow steadily with a major recovery across industries.
The inflation is also slowly raising its ugly head and the government is also facing the problem of rising debt levels.
So the government has decided to slowly withdraw part of the stimulus measures taken at the beginning of 2009.
The government has partly reversed the excise duty and customs duty cuts, apart from raising the corporate tax for many industries. The service tax also been expanded to include railway ticketing. The interest rates are also all set to go up in the coming months, with the Central Bank raising the cash reserve ratio few days back.
