Is Indian Economy is in senile?

It is unfortunate (not the stupid, economies) that the Indian economy begun to decline in its widely measured Gross Domestic Product (GDP) growth to 9% in 2007-08 (and projected to 7.7% for 2008-09) after reaching a peak of 9.6% in 2006-07 in recent years and the average growth during the last five years was 8.8% which is historically high compared to any other five year period in the history of Indian economy.

Certainly, everything is not senile but few things which are signals to determine the slowdown of economy. It comes not only in terms of decline in industrial growth during August as slow as 1.3% but also the export growth which has been hit now severely as the global importing countries demand’s declined significantly due the financial crisis in US and EU. What is not understood was that how the US consumers were spending beyond their means and encountered the bust? Why their demand had has declined? Finally how the late awaken Indian economy climes to be a strong and the fastest growing economy (forget its “democracy”) in the world when its own ingredients are in senile.

The below are the list of article which gives answers to the above questions. These are in some way best article to understand the issue. I have also posted these article time to time.

Vernon Smith’s in WSJ  on There's No Easy Way Out of the Bubble

Donald J. Boudreaux in Forbes on Free Market To The Rescue

Russell Roberts in Forbes on Organic Market

T T Ram Mohan in ET article on Crisis: Don't blame it on subprime loans