Indian economy has been witnessing a phenomenal growth since the last decade. After seeing a growth rate in excess of 9 per cent for the last 3 years, it is still holding its ground in the midst of the current global financial crisis.

Pegging India's growth rate in the current year at between 7 and 8 per cent, the Union Finance Minister, Mr P Chidambaram, has reiterated that India would continue being the second fastest growing economy in the world despite the ongoing global economic slowdown. Though the global financial crisis have affected the Indian equity and foreign exchange markets, the macroeconomic brunt of the meltdown is not much due to the overall strength of the domestic demand and the largely domestic nature of its investment financing.

Chidambaram has further assured that by the second half of the next fiscal, the economy would pick up and the government’s ‘stimulus measures’ would encourage growth and ensure "brisk” economic activities in the last few months of this fiscal year.

Bob Buckle, an APEC Rim trade (based on rich nations) economist has stated that with India and China posting good growth rates, the world may come out of recession more easily.

Further, according to the International Monetary Fund’s (IMF) prediction in October 2008, India is likely to grow at 7.8 per cent in 2008, and 6.3 per cent in 2009.

As a measure to boost the economy and to ensure a 7 per cent growth, the government announced an approximately US$ 6.46 billion fiscal stimulus package, on December 7, 2008. The package entailed additional spending and excise duty cuts for increasing consumption.

According to stock market regulator Security and Exchange Board of India (SEBI), the Indian stocks would be the first to bounce back in the current global financial crisis. SEBI is likely to initiate steps to limit over-leveraged hedge funds with the aim of bringing in more solidity to the unstable market.

Leading global agencies have reiterated faith in the Indian economy. According to Crisil, a leading rating agency, India's retail securitisation market is better placed than the US, exhibiting more stability with few rating downgrades. "Investors in securitised paper in India have no reason to fear crippling losses of the kind that have hit their US counterparts," a Crisil release said.

Further, as per a survey in Deutsch business magazine, Wirtschafts Woche, in spite of the global financial crisis, companies from developed economies such as Germany have shown confidence in India's economic future and are interested in growing their business in the country. Showing faith in India's robust future, around 94 per cent German companies plan to increase their businesses with the subcontinent, the survey stated.

After the signing of the US-India civil nuclear deal, India will now be partnering several countries for nuclear fuel technology projects, and this will further boost the economy.

India and Russia signed 10 agreements in December 2008, including a pact on civil nuclear cooperation.

Thorium Power, a US firm, and Punj Lloyd will be forming a nuclear fuel technology joint venture (JV). The JV will offer thorium fuel technology for light water reactors (LWR) in India.