ASEAN KEY DESTINATIONS
Despite local challenges the Indian economy is set to start 2011 on a strong note. The newly established Financial Stability and Development Council (FSDC), which met last Friday for the first time, has estimated the economy not only sustaining its present growth levels, but also attaining double-digit growth in the coming years. This double digit growth in India will resonate through out the world with the biggest benefits flowing to India's ASEAN neighbors.
The 1st FSDC meeting, chaired by the Indian Finance Minister, Mr Pranab Mukherjee, conducted a detailed study of the state of the Indian economy and also the signs of economic recovery in the West. It concluded that India's exports are likely to see an improvement in 2011, on the back of better economic growth in the US, Asia and China.
The European Union could also see positive growth though the sovereign debt crisis and woes of some nations are a matter of concern, it was noted.
The general conclusion was that 2011 could see some improvement in the world economy.
The currency issues, as is being played out, could have implications for India, the FSDC noted.
It was felt that the US effort to keep the value of currencies artificially low could have adverse impact on the competitiveness of Indian companies, both within, and outside the country.
"If nations adopt protectionist measures, it could have serious implications for the world economy as a whole," the FSDC said in a statement.
It was also decided at the meeting that necessary guidelines for FSDC's functioning would soon be issued.