Thursday, September 21, 2006

Economy Riding High, So Also FDIs

Every picture of the Finance Minister of India Mr Chidambaram these days shows him wearing a generous smile. Coming from a person who is in the driving seat of the mammoth economy, it is quite understandable. Shaking off its lack-lustre growth rate of 6% in the last decade and achieving an all-time high of 8.2%, India is now in a position to flex muscles before the champion China who are still unbeatable.India's GDP has touched $750 billion by traditional method of assessment. Using the jargon 'purchasing power parity' (PPP) which finds favour with the economists, India ranks fourth largest in the world as per International Monetary Fund (IMF).
When it comes to attracting FDIs, India's performance has been even better. As against bagging $7.5 billion during the year 2005, the Finance Minister, in an interview with Reuters, sounded confident that it would reach $10 billion during the year 2006. He was candid to say that except four or five specific sectors where FDIs have still got caps, the opportunities and the projects awaiting investors are very high.
He would have scored a perfect ten out of ten but for the deficit going haywire so also the inflation. He expects deficit would be contained at 3% and high deficit as well as inflation would become history in 2008.
By then, hopefully, we may see his pictures with a broader smile.

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