New Govt Improved India's Perception: DBS

SINGAPORE: The new Indian government has boosted confidence and provided and improved perception towards the country, lending it an "open-for-business" image, according to a report by a leading Singapore banking group.

In its report 'India: Time to Deliver' released yesterday DBS Bank, however, has put in a note of caution, saying, "But sustaining that optimism will not be easy."

The Gross Domestic Product growth should rise but not as quickly as many expect and or hope. In fact, some of the reform measures, including subsidy rationalisation, smaller hikes in support prices and a clampdown on black money could crimp growth in the short-term, the report said.

Any return to 9-10 per cent (economic) growth is probably some years away.

Much groundwork for reform has been laid but the implementation still lies ahead, it said. DBS group, which also operates banks in India, rated it as one of the leading markets.

"Execution risks loom large but we are optimistic. Reform takes time, to be sure," it said. The economy is in better shape now than a year ago.
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