Sensex, the so called barometer of Indian economy, touched 21000 again on 24th Oct 2013 after almost 3 years gap but why the street doesn't seems to be cheering at all? The reason is that Sensex is not the true barometer of Indian economy as it comprises only 30 large Indian companies.
SMEs are a major part of our economy and they are in terrible state today due to high inflation, low demand and policy uncertainties Indian economy is in far terrible state than it was during Nov 2010 when sensex was last seen at 21000. INR is at 61.50 today while it was 44.50 three years ago. Fiscal deficit and current account deficit was in far better shape than it is today.