India’s net international investment position (i.e., outstanding assets minus liabilities) has moved over the period from about –7 per cent of GDP to –17 per cent of GDP. This is consistent with a prolonged phase of running current account deficits which have been financed by increasing net liabilities to the rest of the world.
We are living through challenging times for decision-makers in both private and public roles. The past year has seen a major change in international economic and financial conditions. Global economic growth, having been well above average for a string of years, has slowed noticeably, especially in the major industrial countries – yet inflation rates remain a concern.