On this occasion, the growth potential of countries such as China and India suggests that the expansion in resource demand could continue for an extended period, though this will depend at least to some extent on the economic management skills of the authorities in these countries, not to mention our own.
It is recognised that there are a few structural and tax issues that render Government Securities somewhat unfavourable as compared with other financial instruments available to savers. First, the rates of interest paid on small savings and tax exemptions available to such instruments cause a dampening impact on retailing of Government Securities, and also increase the cost to Government.