New Delhi. If the BJP does not win in the Lok Sabha elections to be held in 2019 and Narendra Modi does not become the Prime Minister again, then it will take a big setback for India's economic growth. It is to say that Christopher Wood, the equity analyst of global brokerage house CLSA. Wood has written in his weekly note Grid and Fear that if Prime Minister Narendra Modi does not become PM again, India's growth will be a blow.
He further said that in such a situation, the stock market may drop and there is a possibility of rupee more weakening.
In such a scenario, investors will get a negative return on investment in the stock market and mutual funds. Apart from this, inflation is also expected to increase due to weak rupee, because oil imports will be expensive. Wood said that the investment cycle in India is already going on, this will help in reducing the NPA problem of the banking system. He said that if Modi becomes the Prime Minister, then the Indian stock market will prove to be the most profitable during the long run.
On the other hand, the first head of International Monetary Fund (IMF), David Lipton, says that if policies were properly managed and the reforms strengthened inclusive growth, then India could become a strong economy country.
He said that if the policies are properly managed and the reforms strengthen the inclusive growth, India's economy can become a strong economy. It is already the 10th largest economy in my opinion but according to the population and the growth rate it has more potential.
With this, he expressed hope that the impact of India's growth will be reflected in poverty reduction figures. He said that though there is a lot to be done yet. So that there is no doubt about the banking system being more competitive and dealing with the old problem of NPA. He said that the results of the economic reforms implemented by India have started to appear and it has benefited the people too. This has strengthened the basis for taking such steps.
He further said that in such a situation, the stock market may drop and there is a possibility of rupee more weakening.
In such a scenario, investors will get a negative return on investment in the stock market and mutual funds. Apart from this, inflation is also expected to increase due to weak rupee, because oil imports will be expensive. Wood said that the investment cycle in India is already going on, this will help in reducing the NPA problem of the banking system. He said that if Modi becomes the Prime Minister, then the Indian stock market will prove to be the most profitable during the long run.
On the other hand, the first head of International Monetary Fund (IMF), David Lipton, says that if policies were properly managed and the reforms strengthened inclusive growth, then India could become a strong economy country.
He said that if the policies are properly managed and the reforms strengthen the inclusive growth, India's economy can become a strong economy. It is already the 10th largest economy in my opinion but according to the population and the growth rate it has more potential.
With this, he expressed hope that the impact of India's growth will be reflected in poverty reduction figures. He said that though there is a lot to be done yet. So that there is no doubt about the banking system being more competitive and dealing with the old problem of NPA. He said that the results of the economic reforms implemented by India have started to appear and it has benefited the people too. This has strengthened the basis for taking such steps.
Comments
Post a Comment