Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

How realistic is the growth target for next 5 years?
Wed, 29 Aug Pre-Open

That the Indian growth story has taken a huge set back is evident to all. At 6.5%, the Indian economy grew at the slowest pace in nine years in FY12. As we all know, the problems are only stretching and the current year looks no different. With issues like global economic slowdown, rising fiscal deficit, inflation, falling industrial production, rupee fall and policy paralysis, it is hard to be optimistic as far as future growth is concerned.

So no wonder that the Planning Commission has cut down its growth estimates from 9% to 8.2% for the next five fiscal years starting from FY13. The estimates for different sectors have been cut down as well. The manufacturing sector growth has been revised down by 1.8% and farm sector estimated to grow at just 4%. We agree with Commission's estimate of a drag in FY13 and FY14. However, we would like to take the Commission's 9% growth estimate in end of the five year term with a pinch of salt.

The current slowdown is not just an outcome of the global events. Backhome, the things are in a real bad shape. There is not a single sector that is not a victim of Government's inertia with regards to reforms and policies. The Indian growth story seems to be running out of steam. The large capital investments have taken steep plunge. The investment in infrastructure that forms the backbone of Indian economy has seen more than 50% dip on account of the policy delays. Unless the Government bites the reforms bullet, even the downward revised estimates look over ambitious.

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

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "How realistic is the growth target for next 5 years?". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Feb 23, 2018 (Close)