Gross domestic investment rate, for the first time, remained above 30 per cent in 2004-05, mainly on account of private investment growing at 19.7 per cent. With the Fiscal Responsibility and Budget Management Act in place, the fiscal situation in India has shown improvement in the recent years. The fiscal consolidation process envisages phased reduction in the key deficit indicators.
At the same time – as the IMF also noted – structural reforms to boost long-term growth remain a priority. I think a good example here is education, which, historically, has been an important factor behind the growth in Finland's economy. Unfortunately, the path that has been so favourable up till now is threatening to peter out.