India is fast emerging as a preferred
investment destination amongst emerging
economies of South East Asia. Some of
the salient features of the Indian Economy,
which makes it a favourable investment
destination, are as follows:
|
GDP Growth:
The Indian economy registered a
growth rate of 8.1% (expected) in
financial year 2005-06, with the
first quarter of financial year
2005-06 exhibiting a growth of 8.1%,
thereby reinforcing the growth potential
of Indian Economy. |
|
Foreign
Exchange Reserves: India
presently has healthy forex reserves
of USD 163 billion. The World Bank
has also observed that rapid growth
of IT services and high remittances
coupled with moderate capital inflows
and low short term external debt
gives the country a further cushion
to speculative attacks. |
|
Interest Rates:
According to Centre for Monitoring
of Indian Economy, given the comfortable
liquidity position and downward
movement of inflation, interest
rate may not rise and are likely
to remain at current levels. |
