Reported by Rakesh Kumar, Technical Editor, ISHRAE Journal
According to World Bank data, India’s GDP growth in 2015 was 7.3%, higher than any major world economy with the exception of China. The growth forecast for 2016 is 7.6-7.8%, which could be higher than all major world economies. The government is doing its best to attract foreign capital by amending laws to improve the ease of doing business, and by opening several sectors to 100% foreign direct investment (FDI). Incentives are being offered for local manufacturing under the ‘Make in India’ initiative. India is now considered to be among the three most attractive global destinations for FDI.
The Indian Rupee depreciated against U.S. dollar from about 62 to 66 during the year 2015, i.e. about 6.5%. While this increased the landed costs of equipment, the easing of commodity prices neutralised the impact of depreciation to some extent. Selling prices were maintained at previous year levels.