The high Oil price has brought a slow-down to all the economies. Evidence the airlines which have stopped operating, not paid their fuel bills nor their staff salaries, or in America filed for Chapter 11.
In India, the Reserve Bank, holding the repo rate at 8 percent amidst clamouring for cheaper money to stimulate the economy and put some support in the Stock market, seems weighed down by worries that capital will fly out of India if it reduces the interest rate. I believe the rate is far too high for a country with the growth potential and dynamics not to mention the size and stability of India. To the contrary, there have been inflows of capital which have been stopped, as the Indian Rupee has fallen to 56.3 to the Dollar. An economy where most people work hard for their daily living, and the middle and upper classes are quite comfortable, such depreciation of the currency can only be good for the small minority of speculators who couldn't care less.
Just a week ago, the Oil price was hiked up, by 10 percent. Ever since then, there have been mass protests, in Kolkata and Gujarat. Oil price impacts peoples' budgets, and with inflation people are not going to put up with it. It is good news the Oil price has at last started to come down on the international markets, both US and Europe and Tokyo, but not before time. (The jobs number from the U.S., with 10,000 more signing on for unemployment benefits, shows what the cost of the high Oil price has been, where job creation has slowed down).
A 5.3 percent, the Indian GDP growth seems quite healthy compared to other economies, but for India it is a slowdown from growth rates which were much higher previously. My suggestion would be for a lowering of the repo rate, as a lot of other economies have been doing recently, as well as stabilisation of Oil price at a lower level. India has to contribute to the worldwide economic Recovery theme, and I pray they will listen to suggestions and take the necessary action.