The Economic Survey 2006-07 has come with a special focus on the external sector of the India’s Economy, which is has gained momentum in the recent years.
With regards to the Exports sector, the economic survey emphasizes on domestic reforms comprising infrastructure related problems, rigidity in labour laws, and high transaction costs. It also emphasizes on lowering custom duties. More investments are to be invited for the exports related industries.
The growth rate of the world economy and improvement in the world trading practices has led exports growth of the country’s economy. The manufacturing sector of the Indian Economy has helped a lot in the continuous rising exports.
As to the Economic Survey 2006-07, the Foreign Direct Investment in the country grew by 98.4% in April-September, 06. Flow of capitals to the country remained strong.
The Foreign Institutional Investments to the country has also experienced a faster rate of growth recently. As to statistics, net inflows of external commercial borrowings increased to US $ 5.1 Billion in the first half of the year 2006-07.
Faster rising Foreign Exchange Reserves reached at US $ 180 Billion as in the month of February 2007.