India managed to display tremendous resilience in the economic downturn which managed to have a big impact on some of the most developed countries in the world. The impact of the global recession was felt in India as well, however it was not on the scale of what was evident in many Asian countries as well as countries like America, Japan and other European countries.
The recently concluded General Elections in India brought back the UPA Government in power with a comfortable majority and minus the support of Left parties. It was a difficult going for the previous UPA Government as it had an ally in Left popular for its obstructive policies which were a hindrance to the economic development of India. Now that the new Government is in place India can look forward to coming out of the recession and move ahead with its march towards economic prosperity.
Signs of this upward march have started surfacing with a strong upward rally by the stock market, renewed foreign investor confidence, increased consumer spending, more job creations, etc. Moody’s a premier rating agency has come out in support of this revival in its report post the election results. It has given a Thumbs Up to the stable outlook of India. “This unexpected outcome provides scope for rationalizing spending, pushing ahead with disinvestment’s, and key reforms,” the report said.
Following the election, Morgan Stanley, one of the world’s largest diversified financial services company raised India’s growth forecast to 5.8 percent from 4.4 percent in the fiscal year ending March 2010.
“India can actually outperform at the margin versus the rest of Asia as it has a more balanced economy,” Morgan Stanley Asia chairman Stephen Roach told an earlier media conference, referring to India’s limited reliance on exports.
He said for the first time in 12 years he was more optimistic on India than China, as the latter had pushed its export-led model too far and left itself too dependent on external factors.
The worse it seems is over for India and the country is back on the tracks of economic development. Government will have to ensure that it continues with good economic policies which takes India to greater heights.
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