Even if GST does fail to go through, investors will not leave India, as the economy is on a recovery path. Earnings growth is likely to pick up from the first quarter of 2017 and Nifty earnings could grow by 15%, says Gopal Agrawal, Chief Investment Officer, Mirae Asset Management in a interview with Prashant Mahesh. There are worries that GST which has been touted as one of the biggest reforms is unlikely to go through. How could this impact the markets and the economy? GST is a very big reform in the category of Ease of Doing Business.
Richard Heyes, head of Pan-Asian equities, and Abhinav Khanna, head of equity, Citigroup Global Markets in India, spoke to ET on the sidelines of Citi Investor Conference. The general mood at the conference was buoyant after the recent market rally, but both Heyes and Khanna felt that global growth was fragile and more confidence building was required through data on global economy. Edited excerpts:
Is the recent global stock market rally sustainable? Richard: Central banks around the world are having a high level of co-ordination behind the scene.
Buddhika Weerasinghe/Getty ImagesContinuing on a now well-worn path of groups downgrading economic growth forecasts, the Asian Development Bank (ADB) today lowered its GDP forecast for developing Asian nations in 2016 citing a weak recovery in major industrial economies and softer growth prospects for China.
SHANGHAI: Indian economy will eventually touch double digit growth rate despite bottlenecks like the stalemate over Goods and Services Tax (GST) as it has conducive conditions, eminent banker and President of BRICS New Development Bank KV Kamath said today. "I am wearing a different hat. I will talk wearing that hat. India is one of outlier in what is happening around the world. In economic context we are stable. We have both the deficits under control," he said, commenting on the economic survey which predicted 7 to 7.5 per cent growth this year.
Pramit Jhaveri, as chief executive of Citigroup in India, has a ringside view of both Indian corporates and global investors. In an interview with ET's MC Govardhana Rangan and Joel Rebello, Jhaveri tells what's in store for the economy, banking and how Prime Minister Narendra Modi's government has performed. Edited excerpts: Do you think the Parliament session could see some reforms, which some say are stalled? I do not subscribe to the theory that no reforms have taken place. I believe that an extraordinary amount has already taken place over the last 18 months.
NEW DELHI: With economic growth slowing to 7 per cent in the April-June quarter, India Inc said on Monday the subdued performance indicates that the cost of capital needs to come down, demanding a rate cut by RBI. "Both consumption and investment levers need a thrust. While the government stands committed to further the reforms agenda, we need to equally create conditions that provide capital at an affordable cost to our entrepreneurs. "We hope that RBI will usher in a deeper cut in policy rates in its September review of the monetary policy," Ficci President Jyotsna Suri stated.
By Rajhkumar K Shaaw, Santanu Chakraborty and Nupur Acharya For India's biggest fund manager, S. Naren, there are better ways to gauge economic growth than the nation's much-reviled official estimate of gross domestic product. Naren says he relies on data for spending on soap and toothpaste, travel and electricity usage when deciding where to invest ICICI Prudential Asset Management Co.'s $29 billion assets. Double-digit demand growth for everything from fuel to air travel and air conditioners means he doesn't worry about whether GDP data overstates the economy's strength.
The lack of emergency on part of the government to address the non-performing assets issue in state-owned banks is a big concern and this may hurt the India story, said Christopher Wood, managing director and chief strategist at CLSA. In an interview with Biswajit Baruah, Wood spoke on various issues including social tensions in India, outlook for the market and China. Edited excerpts: Will the attacks in Paris impact market sentiment in the short term? I think this is going to further inflame and politicise the immigration issue in Europe.
NEW DELHI: Comparing China with India or vice versa is like comparing a pumpkin with an apple. China is a huge $10 trillion economy, while India is about $2 trillion, and thus it does not look fair to compare the two. However, both the countries are in the BRICS grouping and it would be fair to see where the actual money flow is happening. Experts say the mammoth Chinese economy is showing signs of slowdown, while India appears to be in a sweet spot. "The world has changed. But change keeps happening.