Monday, November 15, 2010

INDIA MOVING TO GLOBAL CENTRE STAGE : ROLE OF CHARTERED ACCOUNTANTS

India is poised to achieve a double digit growth of 10% plus in the year 2011 and is expected to touch
the growth rate of 9% to 9.5% in the year 2010. This is a great news in the backdrop of limping growth of the US and European economy in the range of 2% to 3%. Other developed economies are also growing between 1% to 4%. China is also expected to grow between 9.5% to 11%. It is also important to note that most of the developed economies have large negative balance of trade during last 2 years and the United States of America has requested the G-20 nations to allow more freedom in the exchange rates to adjust according to economic reality and not to artificially manage the same.
India is moving towards the centre stage of the world economy. The dream of every Indian to shift the world economic market to India may become a reality very soon. The American Financial Market as well as the European Financial Market are having much lower level of activity. Singapore, Hong Kong and Mumbai can provide a larger supplementary strong modern sophisticated market to the world to channelized investment and financial resources. The CA community in India is preparing itself for new challenges and opportunities which are arising from the economic development. The profession of chartered accountants will need to play a very important role in designing, development and implement of a rugged market infrastructure and regulatory mechanism which is more open,
transparent and liberal. Government need to consider limited capital account convertibility and
provide for a free international market in India. The proposals of the Direct Taxes Code are to be
reconsidered with a view to provide for certain special economic zones, where International Financial Market may be established with a complete freedom for currency inflow and outflow. The financial market regulatory mechanism has to be upgraded to international levels with a developmental mindset rather than control.

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