The crisis was precipitated by weakness in the global economy and the effects of recent policy errors. Other contributors were the strategies left over from the pre-1991 Soviet-style planning era and the Congress Party’s socialist background and bent toward income redistribution in favor of rural areas instead of economic growth. Furthermore, the elections scheduled for 2014 added further urgency to take action because the next budget, in the spring of 2013, will probably have a populist tinge.

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