How has the European debt crisis impacted the Indian Economy?

Nitin Jain, Long Only Equities Asset Management, Kotak Mahindra UK

Of all the BRIC economies India is best placed to capitalize on the situation because, relative to Brazil, Russia and China, India is a big commodities importer. Global market concerns about Europe mean that commodity prices, in for particular oil and gas, have fallen significantly recently. The result is likely to be a multi-billion dollar saving for the Indian economy.

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The Govt. is currently raising funds through - disinvestment, 3G auction

Ravilochan Pola, CEO Kotak Mahindra Inc, US

The huge success of 3G license auction will go a long way in reducing the fiscal deficit for the current fiscal year. The 3G + Broadband Wireless (BWA) auction were budgeted at Rs 350bn. The 3G auctions itself was concluded at Rs. 677bn ($ bn) and all indications for BWA indicate that the exercise will fetch in additional $6-7bn, total additional revenues of around 0.7% of GDP.

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India has clocked a 7.4% GDP growth this fiscal. Which are the triggers that you believe will continue to drive this growth going forward?

Prakash Ramesheshan, Principal Fund Manager - Quasi Private Equity Strategy

After a 7.4% GDP growth in FY2010, we expect a robust GDP growth of around 8.5% in the year ending March 2011. In our view, following factors will drive this growth.

• A regular monsoon - this augurs well for lower inflation and a buoyant rural economy.
• A net commodity importer, India, we believe will benefit from the collapse in commodity prices, especially from the correction in oil prices.

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