Indian and global financial condition in recent years

Tuesday, September 29, 2009 8:18 AM by Pradeep Mahananda
• India has been one of the best performers in the world economy in recent years, but rapidly rising inflation and the complexities of running the world’s biggest democracy are proving challenging.
• When the talk is about the financial condition of India, it can be undoubtedly said that it provides a complete security to its foreign investors. It promotes a transparent environment that includes a free press and a proper legal and accounting system. India has a competitive and dynamic private sector that forms the backbone of India's economic activities. It also accounts for more than 75% of India's Gross Domestic Product. It has a lot of scope for joint ventures and mergers.
• India’s monetary policy has created a right environment to ensure steady investment demand in the economy. Despite of the recession and drought, financial conditions are stable in India. Liquidity in the banking makes our economy more competitive. India in the past few months have reduced its bank rates due to the inflation to help the investors by creating suitable investment environment for them. For the current year RBI has predicted a investment growth of around 6-7%.
• Talking about the global economy, the environment for the investment remains uncertain although the rate of contraction in economic activities and the extent of pressures on financial systems eased in the first quarter of 2009-10. Nascent and sporadic signs of improvements in the global conditions do not suggest any clear trend, and as a result, the uncertainty on the timing and pace of global recovery persists.
• India has established itself as one of the most aggressively emerging markets of the world, by harnessing the talent and skills of its managerial and technical manpower. India's abundant workforce provides it a competitive edge in the global market. India’s economy has been one of the stars of global economics in recent years, growing 9.2% in 2007 and 9.6% in 2006. Growth had been supported by markets reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market.

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