Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

How resilient is Indian economy?
Tue, 29 May Pre-Open

The growth forecasts for Indian economy have recently been revised downwards. Reeling under gross mismanagement, the Indian economy seems to be in a state of mess. However, the Finance Minister feels otherwise. He believes that India is in a better position than other economies to deal with it on account of high savings rate and domestic demand along with regulatory mechanisms.

Given the current circumstances, the picture portrayed by Finance Minister is too rosy to be real. He draws support from a huge young population and hence a robust domestic demand, a strong Indian banking system and diversified exports base. However, with disturbances in the global economy, it is only logical to expect that demand of exported goods will slow down.

The role of major Asian economies, especially India and China, in running the global growth engine can't be undermined. These economies have the advantage of a huge chunk of young population that will keep the demand vibrant and add to the productivity. However, while China is making the right moves by shifting focus to tap the domestic demand, India seems to have landed itself in a very precarious situation.

With twin deficits gaping us wide in our face and rupee in a free fall, an optimistic tone for Indian economy looks so out of place. Our regulatory mechanisms might have worked in the past; however, the country seems to be falling too short on action in policy front. This is keeping foreign investors at bay. The absence of domestic funds and lack of foreign investment will lead to infrastructural deficit thus wasting the potential of youngsters. It is said that tough times can teach a lot. Looks like our time to learn has come. Hope the Government stops fiddling while the country is burning and wakes up to the need of reforms before it is too late.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "How resilient is Indian economy?". Click here!

1 Responses to "How resilient is Indian economy?"

Malcolm Bersohn

May 29, 2012

India needs a government that favours new businesses. I have been trying to
set up a software company in India but the government immediately took one
third of my investment away. My Indian colleague was amazed. Am I likely
to increase my investment? Probably not. I want to see the government lend
money to new businesses that are promising, not take it away from them.

Like 
  
Equitymaster requests your view! Post a comment on "How resilient is Indian economy?". Click here!
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.