The Indian economy continued to register impressive GDP growth, although the rate of growth declined marginally over the previous year, reflecting inflationary trends driven by the increase in the cost of energy and raw materials.

The level of industrial activity has also begun to decline as a result of fiscal constraints imposed on money supply and the raising of interest rates.

Investment flows into India increased by 20 per cent to a record level of about Rs 1,20,000 crore (Rs 1,200 billion). Investment and consequent growth could have been even greater but for the roadblocks to major investments arising from ideological differences, state-Centre conflicts and vested interests.

Some of these self-serving obstacles delayed major projects, depriving the country the opportunity to bridge the gap in infrastructure, energy, power generation, utilisation of the country’s vast natural resources and, finally, to improve the quality of life of its people.

Image: Tata Group chief Ratan Tata poses with Tata Nano | Photograph: Raveendran/AFP/Getty Images