India's currency, the Rupee(Dollar to Rupee) is one of the most popular on the planet. The country is the second most populated in the world and in recent years has dramatically increased its position in the global economy. Recently the government has proposed a plan that will increase the countries international presence even more.

Currently India restricts capital investments going both in and out of the country. Most capital inflows/outflows require the approval of India's central bank. This makes it difficult for Indians to invest internationally and difficult for foreign investors to invest capital in Indian companies. One of the largest benefits of opening capital transactions is borrowing. There are many international places to borrow that will gives companies more money at a more competitive rate than can be found inside India. Since India is still considered a developing country this could help them to grow at a much faster pace than they could without borrowing.

The Country has already outlined the plans for opening its economy. The first part of the plan is to create an economy that is stable and operating free from the government. To do this India has three critical steps. The first is to reduce the government deficit into a surplus. Currently, India has a deficit that is 2.1% of GDP. The plan calls for the government to have a surplus of 1% by 2011. The second step is to reduce inflation. India's inflation is not bad at the moment, at 5%, but must be reduced to compete with most developed countries which usually hover around 2 to 3%. Finally, India will reduce its government ownership of state banks. In 2004 India's government owned 75% of all banking assets. The plan calls for the country to lower this to 33%.

After stabilizing the economy India can open it up to foreign investment. India plans to do this in a few ways. Today India restricts Indian mutual funds from investing in foreign ETFs by enforcing a cumulative ceiling amount that limits the sum of all Indian funds foreign investments. The ceiling amount was previously $1 billion and was raised to $2 billion this summer. This maximum amount will continue to be periodically raised to $5 billion by 2011. Another restriction that will be lifted is the amount that a company can invest overseas. At the present time Indian companies cannot invest more than 200% of the company's value overseas. This number will be raised to 400% by 2011.

This change will have a significant effect for the world. India has already established a place in the international community as the ideal place for call cen

ters, software programming, and many other office jobs that do not require a physical presence. With the new changes and India's continued growth the country will have ownership of companies around the world. Today there are almost no well known Indian brands. While everyone remembers the growth of Japan's economy and their investment throughout the world, the investment of India will be even greater and have an impact on everyone's life.