abhishreshthaa
Abhijeet S
Liberalization has greatly benifitted the external sector. The balance of payments, positions is quite comfortable. The current account deficit is far from significant, and foreign exchange reserves are growing steadily.
The current level is well above what we need for our developmental purposes. The exchange rate has remained steady equally encouraging is a decline in the size of external debt and the debt servicing burden.
All these should boost confidence of the foreign investors in the long term prospect of the economy and one can expect them to continue investing in India.
The economic reform continues to remain focused on facilitating foreign investment and liberalization of trade. Policy liberalization has been significant in this respect. The domestic market is exposed to external competition.
However, the economic reform still lacks its focus on the imperative of restructuring and competitiveness building of the indegenious industry that continues to suffer from inherent disadvantages of high capital costs, poor insfrastructure, irrational duty structure, strangulating labour laws, cumbersome procedures and numerous systematic inefficiencies.
The current level is well above what we need for our developmental purposes. The exchange rate has remained steady equally encouraging is a decline in the size of external debt and the debt servicing burden.
All these should boost confidence of the foreign investors in the long term prospect of the economy and one can expect them to continue investing in India.
The economic reform continues to remain focused on facilitating foreign investment and liberalization of trade. Policy liberalization has been significant in this respect. The domestic market is exposed to external competition.
However, the economic reform still lacks its focus on the imperative of restructuring and competitiveness building of the indegenious industry that continues to suffer from inherent disadvantages of high capital costs, poor insfrastructure, irrational duty structure, strangulating labour laws, cumbersome procedures and numerous systematic inefficiencies.