INVESTMENT SENTIMENTS TO REMAIN POSITIVE
The global growth is expected to remain steady at 3% in 2018 but the outlook for India is highly positive. Confidence in the Indian economy has increased substantially on account of the policy measures of the government and of the central bank. It is expected that Indian economy will for the first time overtake the UK and France in real money dollar terms. The growth in the Indian economy will also drive the rest of South Asia.
Various factors will influence investor sentiments in 2018, like Union Budget in February, corporate earnings, outcome of assembly elections in eight states, monsoon and global oil prices. The major boost to the domestic markets in this year will come from the revival plan of public sector banks by the government that is planning to infuse an amount of $32.5-billion. The recap plan will help banks sort out their non-performing assets (NPAs) or bad loans and take up fresh credit, which should help boost a private sector capital expenditure(capex) recovery in India and also increase foreign investor interest in domestic markets. Analysts believe that the impact of this much-required initiative will not affect the fiscal deficit position of the country and inflation number, but will have positive influence on the economic growth parameter.
The economy growth will also depend on the crude oil prices which has remained low from quite a long time but has grown in last three months increased by about 28 per cent — from USD 52.3 per barrel in August-end to around USD 67. It is also to be seen how the inflation rate swings in the upcoming year, which also has the direct impact and may lead to widening of the current account deficit. In the international arena there are various events that may have rippling impact on the global economy such as New Fed Chief, Fed rate hike by around 75 basis points in CY2018, rapid growth and effects of digital technology, the fourth Industrial revolution.
We are hopeful that both global and local events are likely to be constructive in nature which may be positive for the markets. The first issue of 2018 of our monthly magazine Investors India opens door to good investment prospects for our readers. It also highlights complete scenario of the Indian Economy and why to remain bullish over it, the funds you can go for, and how you can plan well for your taxes. Our dedicated readers can also enjoy reading our Lifestyle Section and learn about the Magic of Self-talk(pg.40) that silently boost your confidence multifold.
GST: Freedom from Archaic Laws
Recently, we accomplished the silver jubilee of our economic liberalization. Year 1991 was the year reforms, a year of inception, when we unbridled our economy of restraint.
With GST Bill we are on our way to re-write the fate of prevailing archaic laws. The GST will perhaps be the single most important reform stimulus since 1991-92. If the bill is passed, 2016 will witness transformation in the Indian Economy.
It will help create a unified market, which would enable seamless movement of goods across states and simultaneously boost production. And therefore, put India’s fiscal system on the cutting edge of the world market economies. 2016 will witness transformation in the Indian Economy.
The world is undergoing turbulences, one after another, but India, however, appears to be much better placed. The dependence on domestic markets is the core reason of being safer but reforms in financial sector by the government and large forex reserves provides additional cushion against any internal and external market volatility.
This month, Investors India presents our readers with International Mutual Funds, a way to diversify a part of your portfolio, globally. The Cover Story of the month will reveal the methods you should follow to achieve complete financial freedom by effortlessly meeting your financial goals. Furthermore, you can also make your health better with tips on healthy liver in our section: Lifestyle Planning.
Wishing You Prosperity!
