According to Finance Minister P. Chidambaram, the Indian government is strongly considering liberalizing its FDI policies in order to attract foreign investments and boost the country’s economy. In 2013-14 India should see a growth rate of 5.5%-6.0%, however the government’s goal is to see a growth rate closer to 8%. Mr. Chidambaram stated that the government will also ask public sector companies to raise funds abroad. Exports will be promoted to help contain the current account deficits (CAD) which soared to a record high of 4.8% in 2012-13. Even without additional measures, current FDI and in-flow of institutional investments are expected to be above US$80 billion which can finance the CAD and contain it below last year’s level.
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