Learn from Argentina

Without reform, India's macroeconomic weaknesses persist

The travails of distant Argentina may provide a timely warning for Indian policymakers and politicians. The Argentinian peso has just hit a record low against the dollar, raising once again the spectre of destabilisation on the external account in a country that has already defaulted on its external obligations multiple times. Of course, India is not Argentina; it is neither a small economy nor a dollarised one, and its economic fundamentals are better than many of its peers. Besides, India is not in any danger of default, and has indeed been remarkably responsible in terms of its external borrowing throughout