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$10 bn shortfall expected in FDI targets - ASSOCHAM
04 Oct '08
4 min read
No doubt, agriculture has done better and is expected to do still better because of anticipated good monsoon but agriculture alone doing well will not enhance the country's GDP.
230 CEOs held that mining, refining, petrochemicals and petroleum sector including cement and steel have not been doing well despite their demand in the market. This again will not augur for well as their contributions to GDP is not going to be significant.
According to 280 CEOs, stock market will continue to remain in dampen mood as large number of investors have shifted their investments to traditional source of savings channels.
US financial crisis will definitely have a cascading effect on Indian economy particularly on FDI's front and the law and order situation in India has unfortunately has come into serious question.
All these factors put together do not send good signals to investors especially overseas and their strategy will be that of wait and watch in which the FDI's will suffer towards India.
About 320 CEOs were of the view that foreign investors are keeping a watch on elections in four state and thereafter, their outcome and again the Parliamentary pool in 2009.
Because of this, the volatility of the Indian political front will remain and investors would also like to take advantages of stable polity after 2009 comes to close.
The vast majority of CEOs have also felt that inflationary pressures will continue to grapple the Indian economy as these expect further rising of interest rates which will cause credit and liquidity crunch in the Indian market as Indian industry would have no option, barring learning to live with the current realities. This again will discourage the sentiments for FDI's towards India.
230 CEOs held that mining, refining, petrochemicals and petroleum sector including cement and steel have not been doing well despite their demand in the market. This again will not augur for well as their contributions to GDP is not going to be significant.
According to 280 CEOs, stock market will continue to remain in dampen mood as large number of investors have shifted their investments to traditional source of savings channels.
US financial crisis will definitely have a cascading effect on Indian economy particularly on FDI's front and the law and order situation in India has unfortunately has come into serious question.
All these factors put together do not send good signals to investors especially overseas and their strategy will be that of wait and watch in which the FDI's will suffer towards India.
About 320 CEOs were of the view that foreign investors are keeping a watch on elections in four state and thereafter, their outcome and again the Parliamentary pool in 2009.
Because of this, the volatility of the Indian political front will remain and investors would also like to take advantages of stable polity after 2009 comes to close.
The vast majority of CEOs have also felt that inflationary pressures will continue to grapple the Indian economy as these expect further rising of interest rates which will cause credit and liquidity crunch in the Indian market as Indian industry would have no option, barring learning to live with the current realities. This again will discourage the sentiments for FDI's towards India.
Associated Chambers of Commerce and Industry of India
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