Amid speculation about the future of economic reforms in India, an advisory panel to the country’s prime minister has projected an optimistic picture, saying the economic growth will accelerate to 6.4% in the current fiscal year that began April 1.
The Prime Minister’s Economic Advisory Council, headed by C. Rangarajan, an eminent Indian economist, admitted that the Indian economy grew only 5 per cent in the fiscal year 2012/13, and voiced concern about the current account deficit. The overall picture presented in the report is, however, that of stability and growth.
The current account deficit will likely narrow to 4.7% of GDP in the current fiscal year from an estimated 5.1% last year, he said. The panel expects wholesale inflation to remain around 6% this fiscal year due to increases in administered fuel prices, he added.
The optimistic outlook on the Indian economy is seen as a reflection of the government’s will to push through the second generation economic reforms, including a proposal to hike FDI cap in the insurance sector.
Last week, India’s Finance Minister P. Chidambaram pointedly dispelled notions about Asia’s third largest economy imposing restrictions on investments. In a wide-ranging interaction with the US business community and opinion leaders, he had underlined that there was a huge opportunity waiting for those ready to bet on the India story.
“I think the right way to look at it is we are not restricting. We are opening up in a gradual manner. Where were we in 1991,” Chidambaram had told the famous Charlie Rose Show in an interview.
“What are we today, in 2013? In the space of 22 years we have opened practically 90 per cent of India’s economy,” he stressed. “There are still some areas which are closed or which are restricted. But they will open up. But the areas that are being opened up are so large, all this manufacturing. Steel, power, roads, airports, seaports, all this is open. Therefore, there’s a huge opportunity for investors,” he emphasized.
According to the Ernst & Young’s (E&Y) 2012 India Attractiveness Survey, investors view India as an attractive investment destination. India stands as the fourth most attractive destination for FDI in the survey’s global ranking.
Author Profile
- India Writes Network (www.indiawrites.org) is an emerging think tank and a media-publishing company focused on international affairs & the India Story. Centre for Global India Insights is the research arm of India Writes Network. To subscribe to India and the World, write to editor@indiawrites.org. A venture of TGII Media Private Limited, a leading media, publishing and consultancy company, IWN has carved a niche for balanced and exhaustive reporting and analysis of international affairs. Eminent personalities, politicians, diplomats, authors, strategy gurus and news-makers have contributed to India Writes Network, as also “India and the World,” a magazine focused on global affairs.
Latest entries
DiplomacyDecember 14, 2024India, Iran and Armenia Advance Connectivity Push with Trilateral Talks in New Delhi- DiplomacyDecember 13, 2024Brazil’s G20 Presidency will focus on tangible results on UNSC reforms, climate action
- DiplomacyDecember 6, 2024India and Vietnam Strengthen Security Ties at 3rd Deputy Ministerial-Level Dialogue
- India and the WorldDecember 6, 2024India and UK Revitalize Strategic Ties at 2+2 Dialogue in New Delhi
