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Indian economy chugging smoothly ahead

The year 2007 threw exceptional challenges before the government high inflation, excess foreign funds inflow, threat of overheating, but none that could not be overcome.

business Updated: Dec 31, 2007 09:45 IST

From relative obscurity not so long ago, India found itself taking the global centre stage with its enterprises essaying epic deals that redeemed a nation's honour but it could not build consensus at home on moving ahead with economic reforms.

The year 2007 threw exceptional challenges before the government - high inflation, excess foreign funds inflow, threat of overheating - but none that could not be overcome.

However, nothing compares to Tata's conquest of Anglo-Dutch steel maker Corus, which includes the remnants of British Steel - a company that tried to thwart the Indian firm's attempt at making the alloy a century ago.

The country, which this year celebrated 60 years of independence from the British, established itself as a global force without whose agreement the world trade talks would remain incomplete. But within the country, there was no agreement between the government and its Left allies on economic reforms, be it opening up the financial sector or liberalising FDI in retail sector. They also did not see eye-to-eye on the Indo-US civil nuclear deal.

The deal aims to give India access to American nuclear fuel and equipment to help meet its soaring energy needs, but the government's key Left allies are fiercely opposed to it, contending that it would compromise the country's sovereignty. The deal, known as the 123 agreements, almost brought down the government - speculation about which caused a huge crash in the stock market.