India has recovered well from the global financial crisis. This is evident from expectations that the Indian economy will post a healthy growth in GDP this fiscal. This may not be as good as the 9% plus growth that the economy had been recording pre-crisis. But the Finance Minister is confident of India reaching the magic double digit growth rate soon. However, Jim Walker, founder of Asianomics, thinks otherwise. He believes that India has the potential to achieve 5-7% GDP growth easily. But Walker is skeptical about a sustainable 9% growth. This is simply because of many issues relating to lack of infrastructure. Private capital investment has also yet to make a comeback in a big way. More importantly, a high fiscal deficit has the potential to play a major spoilsport to India's growth plans. What worries Walker is that there has not been much structural improvement over the last decade in debt levels. He opines that the so called 'structural improvement' in the government's deficits was because it hadn't given any pay rises to civil servants for long. What has changed dramatically is that people are now beginning to perceive the importance of debt levels. When India was growing robustly, the high deficit was overlooked. But the global crisis and the debt fiasco in Europe has changed all that. The limelight has shifted to the amount of debt that households, companies and government now have on their books. India's government especially will have to do more to seriously bring this deficit down going forward. Only then can a sustainable 9% growth look more realistic. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
__._,_.___
*****************************************
http://in.groups.yahoo.com/group/investwise/
INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
****************************************************************
NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.
NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.
****************************************************************
http://in.groups.yahoo.com/group/investwise/
INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
****************************************************************
NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.
NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.
****************************************************************
.
__,_._,___
No comments:
Post a Comment