Sunday, August 17, 2008

Data say enough to silence any economic doomsayer

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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