Tagged #India

11/09/2014

There is No Magic-Wand Solution to India’s Problems

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IndusView Chairman Bundeep Singh Rangar on India’s Macro Trends and Why the Country Remains Favourable as a long-term Investment Destination...

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01/09/2014

India to Become Single Market and Outperform Global Markets

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More than six decades after it achieved independence, India has yet to have a single internal market, with its economy divided up by state taxes on commerce. 

That may be about to change, following the reversal by one of the biggest foes of a national sales tax—Narendra Modi, the Prime Minister who took office in May 2014. After opposing a goods and services tax (GST) during his 12 years running Gujarat, Modi has pulled his ruling party behind the idea and plans to enact it within eight months. 

Success would mean replacing more than a dozen types of tax that increase incentives for corruption, and offer the economy a boost of as much as 1.7%, according to the National Council of Applied Economic Research in New Delhi. 

Here are the reasons why India will outperform global markets in long term:

Foreign Institutional Investors (FIIs) have already poured in $26 billion in equities:

FIIs have been raising their ownership steadily in the Indian markets so far in the year 2014. They have already poured a little over $26 billion so far in the year, on account of the reforms agenda of the new government at the Centre.

Foreign institutional investors, which have been the primary contributor to the massive rally, increased their ownership in top Nifty-50 stocks in the June quarter, ICICI Securities said in a report.

Macro showing signs of improvement: 

Sentiment on domestic economic activity appears to be reviving, with incoming data suggesting a firming up of industrial growth and exports. The June round of the Reserve Bank's industrial outlook survey also points to improvement in business expectations in Q2.

India Ratings & Research (Ind-Ra) has revised its FY15 gross domestic product (GDP) growth forecast to 5.7% from 5.6% (April 2014 forecast). Even though the Union Budget FY15 has addressed certain supply-side issues plaguing the economy, they believe a single budget or one year's policy reforms are not enough to ensure a non-inflationary, sustained and higher economic growth. 

The rating firm also expects industrial GDP growth in FY15 to improve to 5.1%. If achieved, it will be the highest since FY12 (7.8%). The Index of Industrial Production (IIP) grew 4% over April-May 2014. The Index of Eight Core Industries grew 4.6% during Q1 FY15. Although it is still early to call it a trend, we believe this could be the beginning of a broad-based industrial recovery. 

Continuation of policy reforms by the new government: 

There will not be many global triggers for the Indian markets, but much of the action will revolve around policy action by the newly appointed Modi-led government.

Earlier this week the Union Cabinet allowed foreign investment in the Railways for the first time and raised limit for such investment in the defense sector, a step in right direction, say analysts.       

India has definitely a very bright future ahead…

15/08/2014

Happy Independence Day!

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The Independence Day of India, celebrated on 15 August, is a holiday commemorating India's independence from the British rule and its birth as a sovereign nation on 15 August 1947.

India achieved independence following the Indian independence movement noted for largely peaceful nonviolent resistance and civil disobedience led by the Indian National Congress.

The independence coincided with the partition of India wherein the British Indian Empire was divided along religious lines into two new states—Dominion of India (later Republic of India) and Dominion of Pakistan (later Islamic Republic of Pakistan).

The Independence Day is a national holiday in India. The flagship event takes place in Delhi where the Prime Minister hoists the national flag at the Red Fort, followed by a nationally broadcast speech from its ramparts.

The day is observed all over India with flag-hoisting ceremonies, parades and cultural events. Citizens rejoice the day by displaying the national flag on their attire, household accessories, vehicles; varied activities such as kite flying, bonding with family and friends, and enjoying patriotic songs and films are seen.