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Growth suffered under the weight of high inflation, weak investment, corruption scandals and low business confidence. Efforts to open the country wider to foreign investment have been applauded but have yet to take deeper root. "Five percent growth is not adequate for India, that's for sure," said Samiran Chakraborty, head of research at Standard Chartered Bank, South Asia. "With the kind of demographic profile we have, it's quite likely we will not be able to satisfy the population with only 5 percent." In a small way, the soon to be squelched trade in flat screen TVs illustrates India's business and economic challenges. Despite the massive size of its market and high import tariffs, local companies have not become significant players in the consumer electronics manufacturing industry. Buying an imported 32-inch LED television costs up to $474 in New Delhi compared with $355 in Dubai or $330 in Bangkok, making the duty free exemption for individual air travelers a popular way to get a cheaper TV into India. That loophole closes Aug. 26. The Consumer Electronics and Appliances Manufacturers Association estimated 1 million TVs were brought into the country each year by individuals. India's prime minister is insisting the tough times are temporary, and that growth could recover to its previous breakneck levels. "We are trying our best to remedy the situation," Manmohan Singh said in last week's Independence Day address, attributing the economic malaise to the global slowdown. The growth of past years "shows what we are capable of," he said.
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