FDI will rein in deficit, lift markets further: Montek

Our Bureau Updated - January 09, 2013 at 10:24 PM.

Sensex likely to touch 23,000 by year-end

India remains under invested and given the positive signals from the stock markets, there is enough reason to cheer, according to Montek Singh Ahluwalia, Deputy Chairman, Planning Commission.

Investors’ contribution by way of foreign direct investment to the country will go a long way in reining in the fiscal deficit and lift the sentiments further, he said.

This message should be delivered to overseas Indians, as the country seeks to engage the Diaspora in India’s growth story, he said while addressing a plenary session at the Pravasi Bharatiya Divas here.

Quoting recent reports of Goldman Sachs and Morgan Stanley, Ahluwalia pointed out that the Sensex is bound to touch the 23,000 mark by the end of 2013.

The Nifty may see a 17 per cent rise in 2013, next only to Korea and China, he added.

He pointed out urbanisation was taking place at a rapid pace and the country needed to create the required infrastructure.

Positive mood

Speaking on the occasion, Naina Lal Kidwai, President of FICCI, said the surge in stock markets is an indication of the positive mood in the economy. India could become the preferred destination for investment, she said.

Remittances up

“We have continued to receive considerable remittances from the Indian Diaspora, which is our underlying strength.

“In 2012, we received $80 billion, leaving China behind with $76 billion,” she said.

Pushing the knowledge frontiers such as education and skilling could contribute immensely to the economic growth of the country and FICCI remained committed to pursue this vigorously, she added.

> sajeevkumar.v@thehindu.co.in

Published on January 9, 2013 16:39