The fears of the Indian economy slipping into a precarious situation of deflation have been expressed by many, since sometime. The Dollar surges, lower industrial production, mounting price index, weak rupee, increasing bank interest rate, weak political situation, indecisive government, the share market facing weird downwards trends and more have instilled lot of fears in the country. And despite extremely lower inflation rate, the prices of food items are still experiencing reasonably higher increase in prices. This, while putting the economically vulnerable sections of society in a disadvantageous position, has also given a glimmer hope to the policy makers.

The upset in the economic trends no forecast for betterment has had several private equity (PE) firms plans to closing their India operations in the coming months, forecast pundits. The first signs are already visible in the shelving of plans for a growth fund by marquee venture capital firm Accel Partners. And to follow is Canada-based PE fund SITQ is winding up its operations in the country as it not been able to identify deals in the 'right value'.

This is really not a good sign and the concerned must address the issue, before it goes out of control. The national scenario is a replica of the global situation, but being a developing country our focus must be instant retrieval.