"Inflation is high in India but the growth has slowed down. It's not truly stagflation but certainly the situation is not ideal," said Nourie Roubini, famous American economist, while addressing the 44th General Assembly of the World Trade Centers Association in Mumbai.
Talking about the present state of Indian economy Roubini added that the economy is not in Stagflation but is certainly not ideal for brisk economic growth and the cost of doing business in the country is certainly very high because of 'excessive levels of corruption'.
"Unfortunately there have been excessive levels of corruption in India and that can be a negative sentiment for consumers and for businesses. The cost of doing business is too high," Roubini said while sharing his concern about the prevalent corruption in the country.
Roubini also added "There are many macroeconomic problems which the country has faced -- low growth, relatively high inflation, high fiscal deficit, large current account deficit, currency depreciation.... high inflation is a source of political and social instability and unhappiness among the population."
Talking about international scenario, Roubini, who is Chairman of an economic consultancy firm, noted that emerging markets are going to drive global economy with higher growth rate.