India: A Haven for Fast Growing Economies

by May 17, 2018 0 comments

A Haven for Fast Growing EconomiesOver past few years, India has been one of the fastest growing economies in the world. The nation took 60 years to become a US $1 trillion size of economy. After that the country took only 8 years to become a US $ 2 trillion worth of economy.

India has been one of the fastest growing economies in the world over the last several years. We took 60 years to become a US $1 trillion size of economy, and then we took only 8 years thereafter to become a US $ 2 trillion worth of economy.

Asian Development Bank has forecasted that India could double the size of its Economy over the next decade. The favourable demographic profile and significant increase in per capita consumption is what they believe is likely to fuel this incremental GDP growth. As the economic picks up pace, over the next decade, many medium size/ niche companies could witness unprecedented growth opportunities. In the stock markets mostly these will be the mid-cap companies. History of Indian capital market has proved, on multiple occasions, that it this very journey of growth — from quality midcap to large cap — that provides a profitable opportunity to make disproportionate wealth. Just to support this look at the last 15 years CAGR returns of BSE mid cap which have given 21.14% as of May 11, 2018. Investment managers of Mahindra Unnati Emerging Business Yojana believe that investing in mid cap companies, this fund is suitable for those investors who are willing to take a little extra risk to participate in this opportunity. “We believe that much wealth will be created by today’s mid-cap companies over the next decade,” they said.  With economic and consumption growth, turnover and profits of a lot of these companies could grow multi fold; and their asset utilisation will improve significantly. These companies may become large in size as the growth unfolds. And many of them may actually move from midcap size to large cap sizes in the stock market valuation terms.

Jindal Mectec and Kingspan form a Joint venture

Jindal Mectec Pvt. Ltd, the Indian market leader in insulated panels and Kingspan, the global leader in insulated panels and building envelope solutions, have entered a Joint Venture (“Kingspan Jindal”) to capture the massive growth of modern methods of construction in India. This growth is supported by the strong domestic & foreign direct investment momentum in infrastructure; high-end production facilities in the FMCG, food and pharma sectors; distribution centers & warehousing; and in cold chain facilities and other segments.

Writer: Pioneer

Courtesy: The Pioneer

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