Indian economy Growth

Here are some pointers:

Negative points:

1. Industrial growth has slumped (October IIP number -5.1%)
2. Investor confidence has plummeted. Market has been sluggish (Market has dropped back from 20000 to 16000)
3. Government's finances have increased beyond expectation
4. Rupee has depreciated beyond control  (rupee dropped by 17%)
5. Interest rates were increased 13 times. Repo rate is now 8.5. Its is stifling the growth of indian industries.
6. There is lack of political will. New reforms on back burner. Power sector in deep trouble.
7. Indian economy is exposed to global financial troubles.

Positive points

1. Indian consuming middle class is still growing. Domestic consumption is basis of Indian growth.
2. Indian consumption story is still intact. Consumption -> investment -> industrialization -> employment and prosperity
3. Indian economy is resilient. We have faced such difficulties even before and came out of them successfully.
4. Congress view -> focus on poverty alleviation which is just 0.9%. GDP growth of 7% is also good as per  politicians. They dont feel like they or derailing or rolling back growth.

Forecasted growth rate:

RBI - 7.6%          Govt- 7.5%          Independent analysts - 7%

Balance of payments = Current account + capital account + forex reserves

Current account (fully convertible, govt cant deny converting currecy generated through these) -> related to trade in goods and services 
Capital account (not fully convertible, govt permission is required in some cases to convert the indian rupee to foriegn currency generated from these activities) -> related to investment as fdi, fii, bonds, properties etc

Current account deficit is widening. (We need to import oil, machinery from industries etc)
Capital account  inflow (FDI and FII) is same as last year or decreasing
As a result the forex reserve is depeleting with india (dropped below 300 billion $ as per latest news)
If the situation continues we can face balance of payment issues in future.