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Apr 16

The Indian government which is a coalition of the Congress party , few strong regional parties and the Communist  has been running a dream time till two months back, with excellent 8%+ growth rates and also less than 5% inflation. But all these have changed dramatically in the last few weeks with inflation touching a year high of 7.41% , while the industrial growth rate has dropped sharply in the last few months. This is attributed mainly to the high crude oil prices and also the increasing food prices and also the commodity bull run.  Some tough measures including tinkering of RBI interest rates are in the offing.

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