FE@CAMPUS MASTERMIND: Response by Rishikesh to question for March 11-17

Global Rating Agency Moody's Analytics has forecasted the economic growth of India to be 6.2% in 2013 as compared to 5.1% in 2012. If it happens, it will increase the revenue which in turn will control the fiscal deficit. The step towards this improvement can be seen from various reforms made last year such as FDI in multi brand retail, pension and aviation sector, and increase of FDI in insurance from 26% to 49% etc.

Another factor being the bringing down of the fiscal deficit which P Chidambaram did in his budget, it sent out the message that we are serious about tackling our deficits. It would not be surprising if other CRAs also follow and show this increase in economic growth.

India will achieve more than 7% if there is a sharp economic recovery around the world. The major problems in Indian economy are self-inflicted by bad policies and corruption.

Still, there is a sense of positivity with respect to worldwide growth. The US is not keen on a fresh round of Quantitative Facilitation and they made that public recently, implying that there is a greater assurance in the economy to sustain itself without the government enabled motivation.

So, we are hoping that the global economy rebounds in 2013-14, and with it the Indian economy.

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