India has the chance to be startup hub of the world

INDIA has emerged as one of the fastest growing economies even in the face of global downturns. Prospects are positive and looking good, especially after the International Monetary Fund (IMF) projected the country's growth at 7.5 per cent for 2016 and 2017, compared to 6.3 per cent and 6 per cent, respectively, for China. (The China comparison is significant as this is the first time India has outdone China, which traditionally has been the best performing emerging economy.)

With the rise in investor confidence and reduction in red tape, investments into India are accelerating. In the first half of FY2015-16 alone, India received foreign direct investments totalling US$16.63 billion, up about 13 per cent from a year earlier. The government has launched various ambitious national programmes that present significant opportunities for investors. These programmes have the vision to change the cities and the country, and also the way business is done in India. Proactive policy reforms along with several campaigns and initiatives such as Make in India, Digital India, Skill India, Start-up India and Swacch Bharat Abhiyaan (Clean India Mission) are in the process of transforming the extent and quality of rural and urban infrastructure.

A key area that has been under considerable debate is the fiscal deficit target that will be adopted in the Budget. The governor of the Reserve Bank of India has reaffirmed that the target should remain at 3.5 per cent of gross domestic product. And we are confident that the Finance Minister's decision will be underlined by the government's desire to strike the right balance between growth and macro stability.