With the world economy showing some signs of turning the corner, the challenges facing the Indian economy in the coming year could be of a very different order. As American markets recorded the best growth in Christmas sales since 2006 there is some cautious optimism that President Obama's efforts to kick- start that economy may finally be working. The euro crisis too looks a lot more manageable than it did a few months ago. And if the US and European economies do revive, Indian policy will have to change quickly from the recession- fighting mode they have been in over the last two years.
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At first glance this may seem an easy enough task. A revival in Western markets can be expected to provide a much needed boost to exports. More than the quantum of increase it would also offer greater balance to the structure of our exports. The Look East policy has had its impact on Indian trade, with China emerging as the country's largest trading partner
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