Return Of 'Feel Good Factor' For Indian Economy

Even some global ratings agencies like Moody's that had not-too-long-ago warned India of a downgrade, if its policy-makers did not pursue a course correction, changed their outlook for the country to positive from stable. Fitch also also reaffirmed its stable outlook.

In this regard, the most crucial contribution of the government has been the corruption-free administration as pointed out by Finance Minister Arun Jaitley.

As the Modi government goes about changing global perceptions, its actions are guided by the belief of the need to change the mental outlook of the country. In fact, integral to rising aspirations and ease of doing business are the campaigns for sanitation and clean governance, said the analysts.

There is a new code of civic behaviour being created through cleansing campaigns like Clean India, or Swachch Bharat, and the Clean Ganga project. The first year has been a cleansing exercise, as some analysts point out.

"Several brass tack issues like Swachch Bharat, financial inclusion and others have considerably improved the country's macro economic situation in terms of decline in inflation, stability in currency value and made Indian financial markets attractive for the foreign investors," industry chamber Assocham secretary general D.S. Rawat told IANS.

"An economy of two trillion dollars, well integrated with the world, cannot be catapulted into high growth merely with change in the government. However much the government is sincere, the policy tweaking, legislative changes and revival of investment appetite to be followed by increase in consumer demand would take about two, two and a half years. A lot would also depend on the global markets which are subdued but all the same the government has made a good beginning," he said.
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