)
In India to explore two-way relationships in areas of trade, investment and banking, Doha Bank CEO today said he is positive about the country even as the global economy is still under pressure.
Giving reasons for the strong characteristics of India's economic fundamentals, Doha Bank CEO R Seetharaman said, "there is political stability and realignment of monetary and fiscal policies."
"Even as the global economy is still under pressure and is not in full recovery mode, I am cautious, but also positive about the momentum in Indian economy... Because in terms of macroeconomic fundamentals, India has a very strong character," he told PTI in an interview today.
Seetharaman said the rates at which the current account and fiscal deficits, along with the rates of inflation are hovering, is "measurable, manageable and controllable" and 7.5 per cent growth rate is "formidable."
"Also, the market liberalisation policy measures taken are all advantageous and principles under this policy have been followed in defence, insurance, real estate and railways," he added.
"India's current account and fiscal deficits are just 1.5 per cent and about 3.9 per cent, respectively, besides inflation is under control between 5.3 and 5.4 per cent," he said.
The market liberalising policy in multiple sectors also will help and India is the economy for years to come, he said.
Seetharaman also said the increase in foreign direct investments in India, which is just USD 35 billion at present, will help the country's endeavour to consolidate its macroeconomics to grow between 8 and 9 per cent.
"Increasing the flow of FDI should be the real target... India is just 35 billion. It is regrettable. We need more of course. It is better than the previous year of 28 billion. We have to increase FDI that will help to have potential prospect to consolidate our macroeconomics to grow between 8 to 9 per cent," he said.
Talking about global economy, he said "the current situation is a defining moment to latch on to the opportunities which lie in recognising it as phase-three of the financial crisis. Moreover, G20 has to take extraordinary decisions to eradicate extreme poverty and bring in universal healthcare, education and environmental sustainability.
