There were several mistakes, all reflecting policy and governance weaknesses.

Yes, we are in an economic crisis, albeit in its early stages.



How else would you describe a situation where economic growth has collapsed, industrial output has stagnated for two years, jobs are being shed, consumer inflation is close to 10 per cent, the current account deficit (CAD) in the balance of payments is nearly five per cent of GDP at last count, investment is fleeing abroad, external debt maturing in the current fiscal year exceeds $170 billion and the rupee is touching new lows (or highs against the dollar!) each week?



It was all avoidable, if our policy-makers had been more competent and effective (and less venal, some might add).

There was plenty of warning commentary by independent analysts (this columnist included) over the past five years as each major policy misstep was taken.



For the record and for future lesson-drawing, it is useful to briefly outline the five biggest economic policy mistakes (out of a long list), aside from the pervasive nine-year long drought of productivity-enhancing economic reforms.



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