Ahmedabad, Mar 2 (UNI) With forex reserves at 19 billion dollars, the situation at the country's external front seems to be comfortable, according to Mr Bakul Dholakia, Director, Indian Institute of Management, Ahmedabad (IIM-A) said.

Participating in a panel discussion on Union Budget 2007-08 held in IIMA campus as part of Ahmedabad Management Association's (AMA) 50th year celebration, Mr Dholakia said the outlook on the external front looks bright and capital inflows are more than what the country needs.

''For the first time we have seen such positive features combined with projections on fiscal front,'' he said.

Mr Dholakia, who was felicitated by AMA President Raju Vastral for having been bestowed with 'Padmashri Award' for his contribution to management education, said to understand what budget means one needs to go to macro basics of economy.

This is the fourth consecutive year of growth over eight percent which has never happend before in the history of independent India.

The main component of this growth is the manufacture resurgence with the manufacturing industry recording a 11 per cent growth.

However, there seems to be clear focus on agriculture in budget 2007-08. There is proposal of providing Rs 2,25,000 crore as farm credit with additional 50 lakh farmers targeted to be brought under farm credit.

He said farmers' credit is likely to reach Rs 1,90,000 crore as against the targeted Rs 1,75,000 crore during 2006-07.

For the first time the government seems to have recognised merit by announcing a National Means-cum-Merit scholarship to be implemented, with an allocation of Rs 6,000 per child to prevent school dropouts.

For this there is a national level test after eighth standard and anyone can appear for the test, Mr Dholakia said.

The other positive feature of the budget the excise duty exemption for small scale industries raised from Rs one crore to Rs 1.5 crore and cut in peak customs duty rate on non-agricultural items from 12.5 to 10 per cent, he added.

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