Kalpana Morparia, CEO, JP Morgan India is bullish on the India growth story. says there is no need to revise the growth forecasts despite drought concerns, as domestic consumer demand and infrastructure spending would prop up the economy.
There is clearly a feeling that things have stabilized. So, there is a debate on how green are the shoots or are we going to see a ‘W-shaped’ recovery and this entire alphabet soup in terms of that. But the general feeling that I get from my colleagues across the world is that the worst appears to be behind us at least in terms of what happened to the financial sector. Now, just as you have to grow out of any recession, so everything that’s associated with any recession is something that we might still feel the pains of but then again the feeling is that things appear to have stabilised.
India in some ways is blessed. No country in the world has two twin engines propelling the growth. One is the entire investment and capex cycle just because we’re are so under-invested in physical infrastructure and the other is the great Indian consumer demand in terms of the demographic profile—no country in the world is kind of positioned the way we are. So I think these two twin engines are really going to be the drivers of growth.
Now things like the monsoon, the geopolitical situations can have blips in between. But if you really look at the underlying fundamental growth drivers, they are very much there.
JP Morgan is pretty bullish about India and in fact even while people were disappointed in reaction to the budget, we had actually called this number. We had called the fiscal deficit number and just given the way there is such a great need to propel growth now. I think this was the right thing to do. So that’s more from an India our economist’s perspective.
There is clearly a feeling that things have stabilized. So, there is a debate on how green are the shoots or are we going to see a ‘W-shaped’ recovery and this entire alphabet soup in terms of that. But the general feeling that I get from my colleagues across the world is that the worst appears to be behind us at least in terms of what happened to the financial sector. Now, just as you have to grow out of any recession, so everything that’s associated with any recession is something that we might still feel the pains of but then again the feeling is that things appear to have stabilised.
India in some ways is blessed. No country in the world has two twin engines propelling the growth. One is the entire investment and capex cycle just because we’re are so under-invested in physical infrastructure and the other is the great Indian consumer demand in terms of the demographic profile—no country in the world is kind of positioned the way we are. So I think these two twin engines are really going to be the drivers of growth.
Now things like the monsoon, the geopolitical situations can have blips in between. But if you really look at the underlying fundamental growth drivers, they are very much there.
JP Morgan is pretty bullish about India and in fact even while people were disappointed in reaction to the budget, we had actually called this number. We had called the fiscal deficit number and just given the way there is such a great need to propel growth now. I think this was the right thing to do. So that’s more from an India our economist’s perspective.
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