Latest from Dr. Dan Steinbock, ICA Institute Research Director of International Business:
Dr Steinbock is a regular contributor toTalouselama, Finland's leading national business weekly. In his new brief on India's election (Talouselama, Apr 10, 2009), he analyzes the new economic, political and security landscape in India. Amidst the ongoing global financial crisis, India's economy is experiencing a difficult decline, while security threats are increasing. India's government has already launched three stimulus packages of an estimated 85 billion dollar. Interest rates have been cut down to 5.0 percent. The month-long election process will begin in mid-April. "It is overshadowed by the concern for security, political divisions and economic threats," notes Dr Steinbock. "The next coalition government will be internally divisive. Still, it should steer the Indian economy out from the stormy waters. It is a difficult task." For now, India's National Congress Party is leading the election surveys, but the conservative Bharatiya Janata Party is not too far behind. Further, the "Third Front," with its communists and populists, will contribute to the national debate. After the terror attacks in Mumbai, uneasiness is rising. "Since September 11, 2001, Washington has balanced between New Delhi and Islamabad," writes Dr Steinbock. "In the coming months, this balancing act will be tested."