Ongoing global economic meltdown which has crippled the economy of several developed nations has failed to cast its spell on India. The affirmation to help the world economy by Prime Minister Manmohan Singh during his power-packed speech from the dais of United Nations General Assembly narrates about India’s fast growing potential and confidence in the financial sector. The gamut of Indian economy made the Prime Minister confident to teach a lesson to the developed nations for not to have a protectionist approach in matter pertaining to the financial system. Interestingly, this is the same edification which was advised barely a decade back by the big sharks of global economy to majority of the developing nations. The entire world has applauded the influence of India’s growing economic power and its potential to support even the developed nations, but simultaneously it cannot be overlooked that on the internal front, the situation is worrisome politically due to economic issues. The situation has worsened to the extent that the Union Government is compelled to sort out its internal crisis amidst the ongoing international event in USA. The controversy evolving around Home Minister P Chidambaram is being termed as the major cause behind the emergency meeting of Prime Minister and Finance Minister.  It is highly disappointing that when compared to the first term, the UPA has not only proved ineffective in the second term but also dashed the hopes of people who voted in favour of the Congress led alliance. The functioning of the Centre has repeatedly given indications about its failure to control the situation. The biggest problem being confronted by the Centre is related to the economic issues arising out of scams.  The economic reforms have come to a virtual standstill in the second phase. The entire world holds a similar opinion that India is hesitant to take the required steps for economic reforms. Consequences of the unwarranted delay in the execution of long pending economic reforms can no longer be overlooked.

According to financial experts, if immediate steps are not undertaken in this context, it may lead to a situation of alarming financial crisis and adversely affect the policies. Any further hiatus in the process is likely to increase the inflation rate by leaps and bounds, and account for a tremendous dip in the growth rate of agricultural sector. Our policy-makers cannot be ignorant with the ground reality that immediate steps are required to maintain the present growth rate which would also prove crucial for the financial as well as administrative stability. Simultaneously, the Centre also needs to lay thrust to galvanise development projects related to infrastructure. India is yet to come face-to-face with the financial issues which have tormented the developed nations during the economic meltdown. Albeit, the country cannot ignore the reforms which are essential to speed up the Indian economy. Definitely, India is in a condition to preach edifications on economic issues, but any further delay in the steps required for its own economic ramifications and reforms can only pose more problems to the nation.