Economist highlights the opportunities in India

According to Rao, there are adverse situations in global growth condition. And even in such conditions growth pockets should be identified. Entrepreneur should make the right business decision and understand the origination and distribution of risk. So it is important to learn from adversaries when economic growth collapsed from 8.5% to around 5%. Also entrepreneurs should know what is happening globally which can affect their business decisions.

Also, it is important to identify pockets of opportunity in terms of growth rate, interest rates etc. Also economy in Asia especially India and China there is twin deficit problem and one needs to identify them. The main problem is the fiscal deficit wherein government is spending much more than the actual revenue earned. This causes repercussions.

Rao said, as long as expenditure by government is productive, it is beneficial. But expenditure is going into unproductive items like subsidies etc., and when earnings are not strong, it effects government directly in revenues. This affects the currency value as it depend directly on the demand and supply game and creates a gap between imports and exports which leads to high capital investment. Hence, when there is big inflation the productivity levels should increase proportionally and should hedge funds from currency.

She concluded by saying, it is important to grow prudently and seek out qualitative growth by minimising the risks. The good news is, the worst is behind us in the last quarter in terms of growth and India will grow although marginally. But the trend is positive.