Government policies conducive for financial reforms, e.g., allowing entry of FDIs and FIIs in big numbers in Indian market.

Stable governments with consistent economic policies

Formation of regulatory body (SEBI) and clearing house (CCIL)

Government policies encouraging entrepreneurship

Disinvestments by Government from PSUs

Deregulating many industrial sectors to open up gates for private players

3.2. Economic Scenario

Steady growth in GDP (average 7% in last 10 years), and hence, in overall economy

Economy booming many folds in agricultural, manufacturing and services sector

Fairly deregulated stock markets with minimal interference by Government or RBI

Increasing FX reserves (currently $121 bn.) with strong BoP position.

India is the 4th largest economy in the world in terms of purchasing power parity. Personal income of population is increasing with falling interest rates in the traditional avenues of investments likes banks, post offices

Stock indices reaching new heights everyday; increasing number of retail investors in Stock markets

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* Contributed by -
Neha Agarwal & Padmakar Kulkarni,
PGDIM - XI,
NITIE, Mumbai.