SONIA GOT THE IDEA TO PLAY ROBIN HOOD AND GIVE MONEY TO THE POOR AS SHE WANTED "INCLUSIVE GROWTH"
Money was doled out to the poor in schemes like NREGA , Direct cash transfers and Farm loan waivers this led to them spending that money on food etc which led to high inflation .
RBI Saw high inflation as a risk and started inreasing interst rates .
The Interest rates were increased so fast and so high that it destroyed the growth in the econmomy .
So now we are left with low growth and high inflation and a
huge rural population NOT willing TO WORK AND LOOKING FOR FREEBEES FROM THE SYSTEM
perhaps the hardest hit of resouces crunch faced by any must have been RBI since four to six years - given the parameters of Indian economy particularly the rupee value sliding down against American dollor British pound & European dollor - BRICS Summit has opened the doors of a bank to invest in infrastructure investments thereby the influence of dollor on rupee stands nallified - this may help the rupee value to rise - in turn RBI can set the repo rates down - below by 125 basic points much needed for agriculture - power - textiles - transportation and oil drilling sectors to restart the economic activities in full swing - completion of all pending projects - opinions differ
