The Indian government has taken new reforms into movement by reducing the government subsidies and enhancing the foreign direct investments or FDI. These steps are stated to be bold and unexpected as every other party standing in the opposition were totally against this action, which the Indian government has taken. Anyhow, the effect can be seen directly in the stock market of India as the Indian rupee has gained its mark and stocks of companies are on high. The experts from the political background are stating that, these are good reforms, which are being taken but it us surely to get a backlash and might be possible that these reforms even are diluted. They also added that, these reforms are reflecting the changes, which are there to come in the Indian government as the elections, are coming in the year 2014.
For a long time, maximizing electoral success compulsory politicians to movement as if there was a roof of about 5 per cent on increase in speed along with which probably no roof on mercantile populism. The new handling assumptions all centre on growth of the economy, which might see the changes in the coming years. The inflation rate has been growing at a rapid pace and the inflation rate has grown over the years and has reached a double figure mark. Although the inflation rate is growing at a rapid pace, political parties are not taking any action against it. They are sitting mum in the parliament sessions and are discussing something that is useless in every aspect. On the rapid rise of inflation, the Indian government is stating that, there is nothing to be worried about, as everything is going smoothly along with which there is no point that others should get panic.
The growth of inflation has also given an opportunity in the growth of real income of families. Along with this, the rural wages are also enhances which is possible because of the government policies and strategies related to employment. The political gurus are stating that, although India had faced a huge turndown in the year 2008 because of recession, the growth has been stable and currently, the success and growth rate of the Indian economy is cruising at 8 percent every year. Both inflation and economic growth is now the main concern as both has to be kept stable so that situation of panic does not strike the economy and the common people.