Indian Economy can bounce back very quickly if the Government of India and Indian politician community take some serious policy decision quickly. The inflation situation has improved and is now in the range of below 7%. Reserve Bank of India has taken the bold step of reducing the interest rate by 50bps although no one expected such aggressive cut. If inflation remains under control RBI will definitely do few more cuts by the end of FY13. Industrial activity which has now turned to cautious mode due to volatility in the demand may start picking up. Rupee which is under pressure during 2011 had improved in the first two month of 2012 but has been under pressure again from 1st March 2012. The present Rupee situation is only due to the negative economic data coupled with unfriendly Tax environment created by Finance Ministry. Government is trying its best to convince the Global investors but great damage has already been done which will take some Months to restore, one more factor is the Global Crude oil price. If it remain constant at the present level or start decreasing it will give positive impact to Indian Economy as Inflation will remain under control and Trade deficit/ current account deficit / BOP all will remain with in comfort zone. Domestic Industry and the entrepreneur need to come forward for enhancing the manufacturing activity in the coming Months. In one of the recently conducted survey Indian are second most confident Nation after Saudi Arab hoping for faster Economic revival .
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