Thursday, May 13, 2010

Rain of Capital

Rain of Capital

This refers to your edit on Rain of capital( Business Line, May 11,2010). Compared to US economy, European economy and all other Asian economies including China, India’s position to attract capital from global investors is highly favourable, justifiable and logical.
There is political stability and the economy shows signs of high potential for fast growth, with booming confidence.

Financial system is comparatively sound and chances of its going astray are limited. Avenues are plenty for fresh investments and opportunities to develop and prosper are unlimited for overseas investors.

The economy needs heavy long term investments, technology and research support for development of its physical and social infrastructure. This is an ideal time to encash the goodwill the country enjoys.

It is the best opportune moment to remove all legal and administrative hurdles that prevent flow of funds. The inflows will have their own adverse impact on inflation and exchange rate but the long term benefits the economy can accrue should never be lost sight of while framing policies.
The economy is well placed to attract funds and that needs to be fully exploited.

Dr T.V.Gopalakrishnan

(This appeared on The Hindu Business Line on 13/05/10)

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