..........The winter session of parliament is important. While the government is keen to introduce new legislation, the opposition has a different agenda. The danger is that the upcoming parliament session may be a repeat of the monsoon session in spite of the persuasive efforts by the prime minister. Proposed reforms will most likely not go through, leaving the canvas as blank as it was before. But if reforms do go through, the economy will bounce back. As it is, the economy has to recover without much assistance from the government. That is possible if inflation comes down in the first quarter of 2013, as expected by the RBI. That will prompt it to reduce the rate of interest. If inflation drops to 6 per cent and the RBI cuts the repo by 200 bps over three-four months, there would be a qualitative change in the economy.........
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