Modi-Effect: India ranked as the World’s 4th Fastest Growing Economy

    0
    791
    narendra-modi

    Various developments in the Indian market may have had a fundamental impact on the Indian economy— some may be good and some bad. If we really fare the effect of PM’s decisions, you will end up juggling with pros equal cons.

    The World Bank assessed India’s economic condition and ranked it the world’s 4th fastest growing economy in the Global Economic Prospects.

    Here are a few facts about India’s economy growth:

    • India’s economy is believed to grow by 7.2 percent in 2017.
    • From 1951 until 2017, India’s GDP Annual Growth Rate averaged 6.12 percent.
    • The lowest recorded growth rate is -5.20 percent, while a record high growth rate was witnessed in the Q1 of 2010, when India grew by 11.40 percent.
    • The Competitiveness Rank in India averaged 52.73 from 2007 until 2017, reaching an all time high of 71.00 in 2015 and a record low of 39.00 in 2017.
    • Low inflation rate and balanced interest rates are the driving forces for India’s growth rate. The demonetisation leads to reduced consumer spending
    • For 2016-17, India scored 4.52 points out of 7, according to Global Competitiveness Report published by the World Economic Forum.
    • In 2016, India bagged the 39th most competitive nation in the world.

    Effect on Financial Markets

    The financial markets have taken the growth into account too. Nifty and Sensex have made new highs due to the rising flow of funds from foreign investors. A galaxy of stocks too followed the league and hovered around their all time highs, some made new highs.

    The demonetisation effect was nullified by higher growth rate and impressive inflow of funds into capital markets.

    Amidst the volatile markets, however, the markets have dipped considerably. A host of listings due for the coming week clubbed with the effect ahead of F&O expiry was seen in todays market.

    A relief can be expected post Modi’s US visit, which is all likely to raise pharma, IT and defence stocks.

    RESPONSES

    Please enter your comment!
    Please enter your name here