Looks like fruits of Modi government’s reforms getting visible steadily via ET
1 The Indian economy has shown sustained strong growth as major reforms undertaken over the past few years to support growth in the economy are beginning to show results.
2. After sending most stressed companies for resolution under the new Indian Bankruptcy Code, the government has also focused on a major recapitalisation package to strengthen public sector banks.
3 The asset quality cycle is stabilising following the massive recognition of problem loans and their gradual resolution and provisioning. Bank credit growth rose to its highest in more than four years to hit 14.40 per cent for the fortnight ending October 12, 2018.
4 Meanwhile, consumption demand continues to recover from the twin shocks of note ban and GST. Corporate India is seeing an earnings rebound, as more than two-thirds of the Nifty50 companies either have met or beat the average estimate in September quarter.
5 Going forward, with the stabilisation of the domestic currency and pickup in demand, it is likely that earnings will see significant growth.
6 The services sector, which accounts for about 55 per cent of the nation’s GDP, has expanded at the quickest pace since July.
7. Another data showed the Nikkei India Manufacturing Purchasing Managers’ Index strengthened from 52.2 in September to 53.1 in October, as new orders and production increased at the quickest rate in four months.
8 Indian manufacturers are confident that output will be higher over the course of next year and many companies have raised spending in marketing and research and development activities.
9 On tax collection front,GST collections have been surprisingly robust. Actually, a four-fold increase in detection of tax evasion &recoveries in the first 6months of financial year has played a vital role in raising GST collections. GST collections for Oct crossed Rs 1 lakh cr
10 India’s macros are far better placed compared with other emerging economies, and the recent correction seen in the stock market has made valuations of quality stocks very attractive.
11 Compared with its peers, India is still shining and will continue to do so, on the back of strong growth in GDP, corporate earnings and favourable geo-political developments.
12. Besides, India’s young demographic profile mixed with a strong industrial base, developing infrastructure, flexible startup ecosystem and clear growth vision from the Modi government can offer India a significant reasonable advantage over other emerging economies
