The world should not be worried about India’s medium to long term prospects as the nation’s economic fundamentals are sound and robust-
- India not a large borrower: $15 billion borrowing for a country with a $1 trillion GDP is not much
- Strong savings rate of 34.8%
- Investment rate of 35.9%
- Incremental Capital output ratio of 4% (better than China, 4.3%)
- Growth in export of 20%
- Strong growth in foreign exchange reserves at over $308 billion
- As per the projections, by 2022, India could be the world’s largest pool of trained manpower and leaders in industry and commerce, accounting for 10% of the world trade.
Source: The Chartered Accountant (Journal of the ICAI)
Richa Shukla
Globsyn Business School
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