OUTLOOK ON INDIAN ECONOMY
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Infrastructure spending happening ($450million)
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Consumption story remains intact (Disposable income rising 70% population less than 35years)
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GDP growth stronger (9.40%, average 8.24% for the last three years)
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Agricultural growth will lead to strong rural demand
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Corporate profit (Earnings around 25%)
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Standard & Poor, FITCH, Moody’s have upgraded India from speculative to investment
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Foreign Exchange Reserves at $251billion, India fifth country in world
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Per Capita Income increased at 7.6%
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Saving rates have increased to 32.4% and investments have increased by 33.8%
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Revenue deficit 1.5% of GDP
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Fiscal deficit 3.3% vs. the estimation of 3.8%
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Manufacturing sector grows from 8.7% to 11.3% in the last three years
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70% of India’s population below 35years of age
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Highest amount of English speaking graduates in the world
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High Disposable Income rising which ensures continuous demand
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Indian Economy diamond shaped which means middle class segment is the key to sustained growth
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Full capital account convertibility on cards
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Sectoral caps on FDI to be liberalized
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Hedge funds may be allowed
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Private equities making entry in big way
