Is India Ready for the Collapse of Eurozone?

In this crisis scenario the few things that could be done are first, to save our stock markets and investor’s wealth which is the main element for attracting capital flows and so we must open up the provident and pension funds for more stock investments. Second, the government must not delay on its energy price reforms like the diesel price increases. Until there is uniformity between global and domestic prices and subsidies they must not reduce the diesel prices even if the global oil prices decrease.

Third, the Finance Ministry must start reducing the unnecessary expenses and the RBI must control its rate cuts till the Grexit transforms into veracity and the capital outflows appear large. Fourth, fiscal stimulus incentive must not be centered on the excise duty cuts instead it must be focused on infrastructure spending and direct tax cuts. Fifth, the government should open up all the sectors for Foreign direct Investment.

In the latest forecast by Basu he admits that not even the best of contingency plans will help India from avoiding the Euro zone crisis and we are just a mere spectators of the enormous performance. So we can sit back and watch the performance and narrate it to the future generations.