India could see 5-6% growth but the govt is doing nothing about it : Walker

India should stop blaming the global economy for the mess they are in. The finance minister better look into the mirror and figure out the mess the government has created. That is the plain message Jim Walker, managing director, Asianomics, had for India.

In an interview to CNBC TV18, Walker said he was expecting a growth rate of 5-6 percent in financial year 2013 and is amazed how the government is doing nothing about it. The private sector does not take growth for granted and though the long-term story is fine, the government cannot deny the mistakes it has done in the past two years.

People cannot assume that growth will happen at 9 percent and the government can carry on with all the spending it needs to do. The fiscal deficit must be brought under control. That the Indian economy is not generating enough confidence among investors is evident by how the rupee is falling. And though the rupee, according to Walker is “oversold”, it might continue to face pressures.

On the global economy, he said, Germany though had a conflicting position with its European peers, it is perhaps right. “They view inflation and the debasement of currency as being probably one of the greatest of economic evils, and they are right,” he said. So Germany will either quit the euro or decide to stay in it and fight.

Another Lehman would not be a surprise for Walker who thinks Europe will shrink by 5 percent over next two years.

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