The pitfalls and pain for India

.........The measures put in place before the crisis by the former governor YV Reddy in the early 2005 to prevent asset price bubble in the real estate sector, however, went a long way in keeping the impact under check. Reddy knew that the economy was getting overheated. YV Reddy said in a recent interview to Rajya Sabha television, “India’s growth of 9 per cent was a sign of the economy getting a bit overheated, as the economy did not have the potential to grow at that rate. So, the growth needed to come down. The potential for the economy was to grow at 7 to 8 per cent.”................

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