NEW DELHI (NNN-PTI): Morgan Stanley head of emerging markets Ruchir Sharma rues that Indian policymakers are not being able to respond to the deterioration in the country's growth prospects and feels more power needs to move towards the states and away from the Centre.
He also predicts some more movement for the rupee.
"All currencies of countries with a large current-account deficit have been under pressure and the rupee is no exception. Global liquidity is contracting and funding current account deficits is going remain a challenge. Therefore, the rupee is likely to be under pressure for a while," Sharma, who has recently come out with the international bestseller "Breakout Nations", told reporters.
Delving into the factors that ail Indian economy, the columnist-investor says the cheap foreign capital that funded India's economic boom between 2003 and 2008 is no longer available.
"India's growth rate is returning to its pre-2003 average of 5.5-6 percent. That is a real disappointment for everyone who had got used to India growing at 8-9 percent and it seems the Indian policymakers are not being able to respond to the deterioration in India's growth prospects."
Sharma, however, suggests steps to help stabilise the economy. -NNN-PTI
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