GDP growth has fallen consecutively from 8.2% (2016-17) to 4.5%(2019-20) QoQ. But still there is not much fear in the market. Market is already feeling bored of GDP results and every one knows that the equilibrium point is not so far.
Government want to grow the Indian GDP with rate of 10% but the question is, will the govt be able to achieve half of it which is 5%?
GDP is the indication of the economy but it has always been doubtful because it does not show the clear picture.
GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports)
Calculating private consumption is not easy and It’s not accurate every time. Government investment and government spending is increasing not decreasing in the current economic situation. Government is taking preventive measures but the result will be seen gradually.
How it is going down
GDP is going down but still there are companies which are posting positive result. Auto sector is not showing growth but oil consumption has been increased in India. Can someone explain that when we are not producing anything then where does this oil go?
GDP is complicated thing but investing is easier than this because you are not worried about all the companies in India. You are only worried about your company. Most of the companies of nifty 50 have beaten the expectations. So how did they earned this profit.
There is no need to be fearful but there is need to be cautious. Your selection should be best so that you could sleep like a child even Indian GDP keeps going down.
I agree that our condition is not good but other countries also struggling to keep the pace on with each quarter. Check the OECD data, We are more volatile than others but don’t loose the hope. We need to have the faith in Indian economy. I see the talent growing in India and because of huge population, we still have the chance to grow rapidly.
Government is focusing on creation of demand and Govt has already given the tax benefits to corporate sector. Now its time for the government to think about the consumers who are the end user for the products created by the producers. This is the only way to create demand in market.
This time big investors are waiting for the opportunity and they are ready to flow the money into the market so that they can ride the momentum they were waiting since 2017 bull run. What for you here?
If you have invested already then stay invested. If you were waiting to invest then this is the time because now there is nothing to loose. But so much to gain. Checkout our other blogs on trueway-blog.com