India, Asia's fourth largest economy, is expected to post a GDP growth rate of well over six per cent for the current fiscal, thanks to a robust growth in manufacturing and services sectors.
The growth rate is remarkable even as the economy struggles on the inflation and high global crude prices front. The optimism stemming from robust and continuing growth has had a positive impact on the country's foreign exchange reserves too, which have surged to over $130 billion in recent weeks, due to huge inflows from abroad. Buoyancy in revenue collections -- both on direct and indirect side -- and a somewhat tight hand at expenditure is also likely to bring the fiscal deficit within the budgeted amount.
Though agriculture growth remains a bit of concern, the way ahead for the country on the economic front looks bright and clear considering the FDI inflows as well as the record peaks that the domestic stockmarkets are reaching every day.
- Girish Chadha