NEW DELHI - India is heading straight for economic failure post-Chidambaram’s budget as a direct result of the lack of meaningful economic reform, says Heritage Foundation, an important conservative think tank in the US.

Assessing finance minister, P Chidambaram’s budget, Derek Scissors of the Washington-based organization said that it “leaves India on the same, failing course it’s been on of undisciplined spending and unrealistic expectations”.

The Indian economy is in dire health, he said, not only because Indians’ incomes have stagnated, income growth slowed and consumer inflation is high, but because manufacturing that should lead the Indian economy that would create jobs for the swelling ranks of young Indians is refusing to take off.

“Services lead in large part because the labour market is more flexible in services industries than in manufacturing. Rather than labour market reform, the Indian government offers a state-led infrastructure program.

But the infrastructure program has no chance to succeed while property rights to land remain so ill-defined,” he explained.