Neha Dhamija
Owing to the healthy forex reserves, impressive measures taken to handle the financial disturbance and attractive GDP growth rate, India is expected to outrun developed nations like UK, US and Japan and come up as a strong ‘survivor’ out of the turmoil.
The country is to rank fourth after China, Russia and S Korea whereas US, UK and Japan are expected to move down to 11th, 12th and 13th slots respectively.
The revelation came as part of Assocham’s report titled \'India & G20: Economic fundamentals amid global recession\'.
The parameters that were considered to arrive at the conclusion include- spending power, tax structure, size of the economy, budget balances, interest rate policy, forex reserves and debt burden. Among these, India was placed at the last position (19th) when it came to budget balance and public debt as percentage of GDP; however the fourth rank with respect to foreign exchange reserves gave it the advantage to outwit the other competitors.
The attempts to bring the situation in control comprise cuts announced in CRR (Cash Reserve ratio), repo rate and reverse repo rate.
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