Is India heading for a great 2011 ?
The Year 2008 and 2009 belonged to China, Australia and India, in that order and the year 2010 may also see a decent growth rate for India.
The year 2011 could well be the best year for India for various reasons. First the second largest populated country of the world has seen a decent annual monsoon rainfall, which means better output of food for the millions of growing middle class Indians. Also that means some extra agricultural produce for exports at highly attractive rates.
The country has found crude oil and gas in the recent past, which are adding up the local contribution in a big way in the last two years.
Also the country is seeing a major increase in domestic demand for all products and services due to the increasing individual incomes. Add to this the ability of the country to grab every opportunity to grab high value information technology jobs from US and Europe , which are scouting for ways to cut costs and stay afloat.
Higher domestic growth rate with low dependence on exports is helping the country to attract more foreign capital at low interest rates. Also it has a good restriction on capital account convertibility, which is helping it to save itself from the mercy of the dangerous foreign hedge funds.