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Foreign funds playing key role in India growth

DUBAI - About150 professional members of the Institute of Chartered Accountants of India, forming part of the Bahrain Chapter of the Institute, were given a presentation on Indian Economic Outlook by the visiting president of the Institute, R. Bhupathy. The programme was held at the Bahrain Society of Engineers auditorium.

Bhupathy stressed on the role played by foreign institutional investments in India, and explained the country's potential in the global market place, more specifically in terms of natural and knowledge resources, large foreign exchange reserves and high GDP growth rate. He made a reference to the bullish capital markets and the upgrade in the long term foreign currency ratings of India by Standards & Poor rating agency.

On the subject of the recent development of Business Process Outsourcing jobs directed towards India, Mr Bhupathy mentioned that the lower cost of highly skilled and competent labour in India is responsible for this major move across the globe. Quoting sources, he mentioned that the cost per full time employee in India was only 20 per cent of the FTE in the United States, which offered competitive advantage for India. Mr Bhupathy discussed the various initiatives taken by the Indian government to attract Foreign Direct Investments in various projects in the country. He quoted independent sources predicting that India would become the third largest economy, behind China and US, by 2050.