Monday, February 18, 2013
Tuesday, October 30, 2012
Sunday, October 28, 2012
With rising prices, stock market crash, rupee depreciating and oil prices hitting the roof, Indian growth story has definitely hit a road block. Foreign investments worth $3 billion were withdrawn from stock market in Q1, recent crash is no encouragement either. However, wasn’t it an expected phenomenon? The success story has been continuing over last 5 years with growth rate an envy of all the other nations of the world, with Indian economy reaching its plateau with increased domestic demands causing inflationary pressures resulting into a bitter halt.
Now, this scenario does sound too grim, isn’t it ? However one must also observe the fact that although India might not witness a impressive growth rate of 9% but she will still be witnessing a strong 7.5% growth rate with the current scenario in this fiscal year.
On a broader scale one can comment that growth in infrastructure is in essence actual economic growth which does seem to be taking a back seat in the current scene. Where India does have its own shares of issues with infrastructure, manufacturing, attracting foreign investments, however the robust & strong sectors like IT, pharmaceuticals and property sectors compensate for them. These sectors are not only generating revenue from overseas markets, however are also able to fulfill huge domestic demand which has come into play with rising salaries.
Now, with the current situation does India still remain any which way attractive to investors? Investors need to focus on areas that are organically growing and are not dependent on government reforms and are not affected with government policies. India will surely be a unique market place witnessing highs & lows in short spans however the consistent growth pattern will be the constant factor assisting investors in their interest in India. The biggest challenge will ofcourse remain to maintain cash flow with lowest debts. Indian companies have on the whole grown even with changes in government policies, which should continue as a trend in future as well.