Indian Economy to Be More Attractive, Stable: KPMG

Mumbai, Feb 14 (IANS) India is expected to progress into a stable and more attractive investment destination owing to favourable macroeconomic policies and conditions, leading business consultancy firm KPMG said in a report.

"With favourable macroeconomic conditions, a prudent fiscal policy, responsible government spend and a pro-reform government, India shall continue to evolve into an even more attractive and stable investment destination," said KPMG's "India Soars High" report launched at 'Make in India Week'.

Highlighting India's investment positive higher economic growth momentum even as global economies are confronting turmoil, it said implementation of unified tax system and healthy economic growth opportunities will raise fiscal headspace for infrastructure investment.

It also noted that measures aimed at rationalising subsidies will strengthen the positive economic outlook for India as "savings from subsidies and higher tax revenues would enable the government to fund its capital expenditure plan while sticking to fiscal discipline".

It added that reform measures initiated by the government have underpinned India's long term growth potential while the reduction in current account deficit on the back of falling oil prices enabled the RBI to increase foreign exchange reserves, which could act as a cushion against external shocks.