In addition, public debt is largely held domestically and is denominated in Rupees, insulating the country from adverse movements in exchange rates and contagion arising out of risk-off sentiment of the foreign investors. India’s large and diversified economy along with educated workers and strong entrepreneurial class can go a long way in augmenting domestic growth and furthering India’s long term growth story.
There have been efforts to improve the general investment/business sentiment in the country. The Government has announced its commitment for fiscal consolidation and working towards a more transparent and stable tax regime. Improvements in supply side channels have been focussed to address the problem of inflation.