Prof. J.D. Agarwal, Chairman & Director, Indian Institute of Finance, Delhi said India, the largest democracy of the world, is all set to become major economic power. India faced its worst ever financial crisis in 1991 when its foreign exchange reserves fell below one billion dollars, inflation rate was as high as 16.7 percent, suffering from high fiscal deficit, high unemployment rate and several other economic weaknesses and other odds while delivering Professor K.S. Mathur Memorial Lecture on Financial Developments in the World Economy at University of Rajasthan, Jaipur

According to Prof. Agarwal, India has successfully launched and handled its economic reforms process of privatization and liberalization to bring about macro economic stabilization despite the US sanctions.

According to him, its foreign exchange reserves have crossed 100 billion dollars; fiscal deficit is within tolerable limits, growth rate of 7 percent expected for the current year; the rupee is gaining strength despite RBIs intervention, banking and financial institutions have improved, sensex has crossed over 6000 points from a low level of 3000 six months ago.
The overall outlook of the economy is encouraging feels Prof. Agarwal.