OUTLOOK ON INDIAN ECONOMY

OUTLOOK ON INDIAN ECONOMY

• Infrastructure spending happening ($450million)

• Consumption story remains intact (Disposable income rising 70% population less than 35years)

• GDP growth stronger (9.40%, average 8.24% for the last three years)

• Agricultural growth will lead to strong rural demand

• Corporate profit (Earnings around 25%)

• Standard & Poor, FITCH, Moody’s have upgraded India from speculative to investment

• Foreign Exchange Reserves at $251billion, India fifth country in world

• Per Capita Income increased at 7.6%

• Saving rates have increased to 32.4% and investments have increased by 33.8%

• Revenue deficit 1.5% of GDP

• Fiscal deficit 3.3% vs. the estimation of 3.8%

• Manufacturing sector grows from 8.7% to 11.3% in the last three years

• 70% of India’s population below 35years of age

• Highest amount of English speaking graduates in the world

• High Disposable Income rising which ensures continuous demand

• Indian Economy diamond shaped which means middle class segment is the key to sustained growth

• Full capital account convertibility on cards

• Sectoral caps on FDI to be liberalized

• Hedge funds may be allowed

• Private equities making entry in big way