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Emerging Markets Opportunities India
Emerging Markets Opportunities India
4 5 6 7 8 9 11 13 16 17 19 20
India as a preferred destination for Investments? Indias Rating Indias significance over the rest of world markets Economic growth and projections by IMF Sectoral Contribution to Indias Growth Trends in Industrial Output Foreign Investments & Performance Scenarios
Best Investment Options for 2011 Performance of Foreign Funds in India Funds Status in India Investment news Concluding Remarks
PROLOGUE
The worlds largest democracy and second most populous nation, India has seen a significant growth in its economic investment and output since the 1990s. As compared to figure, Indias economy has shown an average growth rate of more than 7% in the decade since 1997, thereby decreasing poverty by about 10 percentage points. The countrys diverse economy sees agriculture as the primary dependence, though services now accounts for more than half of Indias output and one third of its entire labor force. India had shown viable improvement in IT sector, becoming a major exporter of software services and software/IT workers. India emerged relatively untouched from the financial crisis of 2007-08 as it reported a strong GDP growth of 7.4% in the 2009-10 fiscal year, even with a poor rainy season during this period. First half GDP growth this year has been reported at 8.9 percent over the same period in the previous year. India has also attracted large amounts of foreign investment in the form of FDI as well as portfolio investments this year, due to its quick recovery from financial crisis. The recovery crisis still prevails in nations like Europe and the United States, though India along with many other emerging markets has seen an increased influx of foreign capital. Capital requirements for Indian industry remain high given the rapid expansion of the economy, which means FDI investments are easily absorbed. Portfolio investment in India this year has broken all previous records resulting in a steep rise in the equity markets. This has increased the chances of bubble formation. Between April 1, 2009, and November 8, 2010, the BSE Sensex showed sharp hike from 9,901 points to an all-time closing high of 21,004 points. That index has been hovering around the 20,000 mark ever since. The table below represents the trend of Indias major economic indicators over years
Country
Real GDP (at factor cost, % change) Wholesale Price Index (average % change) Exports (% change in current US) Imports (% change in current US) Current Account Balance (% of GDP)
Sources: Central Statistical Organization, Reserve Bank of India and World Bank Staff Estimates.
INDIAS RATING
Standard & Poors raised Indias outlook to stable from negative on expectations that the economys fiscal position may recover and the economy would remain on a strong growth path. The agency also affirmed its rating on the long-term and short-term credit. Following are key economic issues for Asias third-largest economy. Indias wholesale price index topped expectation and came within touching distance of double digits in February. Annual wholesale price inflation accelerated to 9.89 percent in February, the highest since October 2008 and well above the Reserve Bank of Indias (RBI) endMarch projection of 8.5 percent and the 8.56 percent January reading. Fitchs Outlook on Long-term ratings for Indian banks remains Stable in 2011, after a negative bias in 2009 following the credit crisis. The Stable Outlook reflects easing asset quality concerns, together with an improving loan loss reserves position and expectations of further infusions of common equity by the government. Moodys Investor Service had upgraded Indias local bond rating to Ba1, one notch below investment grade, citing improving public finances due to recent government reforms. Moodys also said it would consider unifying Indias local and foreign currency ratings at Baa3. Fitch Ratings raised Indias local currency rating outlook to stable from negative forecasting lower debt ratios on the back of strong economic growth and robust cash flows from telecom auctions. The agency affirmed Indias BBB-minus local and foreign currency rating and the stable outlook on its foreign currency rating.
COMPARITIVE SURVEY
NCEAR Dun and Bradstreet and RBI (Per cent)
175
65 60
125
55 50
75
45 40
25
7 8 9 0 6 7 8 9 6 7 8 9 0 7 8 9 0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -1 -1 -1 ep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep S
35
NCAER HSBC-Markit
Dun&Bradstreet FICCI
225
75 70
80
Assessment
Expectations
Threshold
from financial turmoil, Indias growth rate picked up to 7.4 percent in 2009-10 from 6.7 percent a year ago. The economy expanded by 8.9 percent in the first half of the current fiscal, making India one of the fastest growing economies in the world. As per the International Monetary Funds (IMF) forecasts, Indian economy is expected to record a growth rate of 8.8 percent in 2010-11.
World Output (at Market Exchange Rates) Advanced Economies Emerging & Develping Economies U.S.A. Eurozone Germany France Italy Spain Netherlands Japan U.K. Canada Austrailia Korea, South Taiwan Singapore Note : Asean 5 are Indonesia, Thailand, Philippines, Malaysia and Vietnam Source: Update to World Economic Outlook, IMF, July 2010 and WEO April 2010 Database China India Asean 5 Brazil Russia South Africa
3.9 2.8 8.3 2.1 2.8 2.5 2.3 1.5 3.6 3.6 2.4 2.6 2.5 4.7 5.1 6.0 8.2 13.0 9.4 6.2 6.1 8.1 5.5
1.8 0.5 6.1 0.4 0.6 1.2 0.3 -1.3 0.9 2.0 -1.2 0.5 0.4 2.4 5.1 6.0 8.2 9.6 7.3 4.7 5.1 5.6 3.7
-2.0 -3.2 2.4 -2.4 -4.1 -5.0 -2.2 -5.0 -3.6 -4.0 -5.2 -4.9 -2.6 1.3 0.2 -1.9 -2.0 8.7 5.7 1.7 -0.2 -6.6 -1.8
3.6 2.6 6.8 3.3 1.0 1.4 1.4 0.9 -0.4 1.3 2.4 1.2 3.6 3.0 5.7 7.7 9.9 10.5 9.4 6.4 7.1 4.3 2.6
3.4 2.4 6.4 2.9 1.3 1.6 1.6 1.1 0.6 1.3 1.8 2.1 2.8 3.5 5.0 4.3 4.9 9.6 8.4 5.5 4.2 4.1 3.6
AGRICULTURAL SECTOR
Indian agricultural yields lag the highest yields found elsewhere in the world. Outlook- The better rainfall this year has lead to far higher agricultural growth. The Central Statistical Organisation (CSO) has reported that Indias farm sector grew by 2.5% and 4.4% in the first two quarters of this year and with the good rainy season this year and the expectation of good rains next year too, the outlook for Indian agriculture in 2011 is good. According to the monsoon forecasts by the Meteorological Department, crop output is expected to show a strong rebound in 2010/11.
Ex
INDUSTRIAL SECTOR
The General Index of Industrial Production (IIP) has posted double digit growth rate driven by similar growth rates in output in the manufacturing and mining sector. Manufacturing output growth in 2009/10 was strong in all the quarters, especially in the case of capital goods and durable consumer goods while growth in non-durable consumer goods were impacted by poor export growth and a lower output of sugar. Outlook- Industrial performance in India in 2011 will be influenced more by external factors than the domestic circumstances. Domestic consumption and economic recovery in Europe and North America will play a huge part in industrial growth in India. Industrial growth in 2011 is forecasted to be between 6-7 percent with significant downside risks. Overall, GDP in the industrial sector is forecasted to expand 9.6 per cent in 2010/11, rising to 10.3 per cent in 2011/12.
Ex
CONSTRUCTION SECTOR
Services sector grew to 57 percent of GDP by 2009-10. The services industry in India is well diversified due to which overall growth in the sector has been resilient even through economic troughs. Outlook - The outlook for services in 2011 is good to the extent that the Indian financial system is nowhere nearly as exposed to the financial instruments or the loose lending that many western banks were involved in. Overall, non-farm sector GDP grew by 8.8 per cent in 2009/10. The expansion in the services sector is expected to approach 9 per cent in 2010/11 and inch up to 9.6 per cent in 2011/12. Over all, the non-farm sector is expected to grow by 9.2 per cent in 2010/11 and 9.8 per cent in 2011/12.
SERVICE SECTOR
Services sector grew to 57 percent of GDP by 2009-10. The services industry in India is well diversified due to which overall growth in the sector has been resilient even through economic troughs. Outlook - The outlook for services in 2011 is good to the extent that the Indian financial system is nowhere nearly as exposed to the financial instruments or the loose lending that many western banks were involved in. Overall, non-farm sector GDP grew by 8.8 per cent in 2009/10. The expansion in the services sector is expected to approach 9 per cent in 2010/11 and inch up to 9.6 per cent in 2011/12. Over all, the non-farm sector is expected to grow by 9.2 per cent in 2010/11 and 9.8 per cent in 2011/12.
Sovereign risk Currency risk Banking sector risk Source : India: Country risk summary Political risk Economic structure risk
BB BB BB BBB BBB
10.3 8.7 8.3 6.7 5.3 4.7 0.8 0.8 3.8 9.0 13.4 15.1 8.5 2.8 10.1 9.8
11.1 8.9 8.9 7.3 5.8 4.9 0.5 0.3 3.4 9.2 14.6 16.0 9.0 2.8 10.5 10.1
8.3 7.1 4.6 5.5 2.0 3.2 2.9 3.0 6.0 7.4 3.8 6.7 6.4 2.8 5.8 7.5
2.7 7.4 5.5 5.2 4.0 3.8 2.0 0.9 6.8 9.0 10.3 12.7 5.2 2.6 9.7 8.0
19.1 21.3 20.8 12.2 7.9 13.2 3.8 5.0 2.0 8.6 21.6 41.1 18.0 7.3 20.0 28.0
9.3 10.5 8.9 7.1 2.6 -1.7 -5.8 -3.2 7.4 11.7 19.3 17.1 8.9 -2.1 13.5 6.3
9.0 2.2 6.2 6.8 8.6 6.6 3.3 1.2 -0.5 10.1 12.5 7.5 6.1 4.7 7.3 8.5
-0.7 -5.5 2.1 0.1 3.5 10.8 -1.8 5.6 15.6 23.7 33.7 31.5 -1.0 4.5 25.1 16.5
12.4 5.1 7.6 8.9 10.1 5.1 4.9 -0.1 -5.3 5.1 6.0 0.2 8.5 4.8 1.6 5.3
Brazil China Republic of Korea Russian Federation India Mexico South America, excl. Brazil south Asia, excl. India south-East Asia North Africa Central Europe CIS, excl. Russian Fed.
-1 0 1 2 3 4 5 6
Brazil China Republic of Korea Russian Federation India Mexico South America, excl. Brazil south Asia, excl. India south-East Asia North Africa Central Europe CIS, excl. Russian Fed.
87 -1 0 1 2 3 4 5 6 87
Services
Brazil China Republic of Korea Russian Federation India Mexico South America, excl. Brazil south Asia, excl. India south-East Asia North Africa Central Europe CIS, excl. Russian Fed.
-1 0 1 2 3 4 5 6
Brazil China Republic of Korea Russian Federation India Mexico South America, excl. Brazil south Asia, excl. India south-East Asia North Africa Central Europe CIS, excl. Russian Fed.
87 -1 0 1 2 3 4 5 6 87
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FDI
India, which was a minor global FDI player in 2000, is presently the worlds thirteenth largest FDI host country. Presently services sector accounts for approximately 61% of Indias annual FDI inflows and manufacturing accounts for 27%, while primary sector activities (primarily mining and petroleum) accounts for 9% approximately. Eighty percent of post-2000 FDI inflows have been in the form of Greenfield investments. The average investment size also quadrupled from US$ 9 million to US$ 34 million over this period.
While the largest recent greenfield investments span various sectors, the largest recent M&As focus on telecommunications, energy and pharmaceutics/healthcare sector. In 2010/11 and 2011/12 analysts forecast a continued expansion of net FDI to $30 billion in both years, portfolio capital inflows of $25 billion and $35 billion and a steady increase in net loan capital inflows to $17 and $25 billion respectively. Overall, our estimates for capital inflows are $73 billion in 2010/11 and $91 billion in 2011/12. This would be adequate to finance the large current account deficit in the two years and leave a modest $31 and $41 billion (2.0 and 2.4 per cent of GDP) to be absorbed in the foreign exchange reserves.
7%
Offshore opportunity
Despite India accounting for 51 per cent market share of the off shoring market, there is still tremendous space for growth as current off shoring market is still a small part of the outsourcing industry. Indian companies are expected to focus on mainland Europe to tap growth opportunities in the offshore technology services market worth tens of billions of dollars. According to Gartner Research, the countrys technology services, dominated by IT services exports worth USD 60 billion will touch USD 3.6 trillion in 2011.
Service Sector Computer Software & Hardware Telecommunications Housing & Real Estate Construction Activities Power Automobile Industry Metallurgical Industries Petroleum & Natural Gas Chemicals
60000
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Exports
Indias exports showed an extraordinary annual growth of 36.4% which was highest in 33 -month with consignments in December 2010 raising prospects of the country exporting $215-225 billion worth of merchandise in the current fiscal. IndiExports in December aggregated $22.5 billion, while imports contracted by 11.1% to $25.1 billion, resulting in a narrow trade deficit of $2.6 billion, the lowest in three-year.
In 2010/11, analysts forecast the value of crude oil imports to be high due to increase in crude prices by almost 15 per cent and an increase in the quantities imported. The oil import bill is expected to rise to $103 billion in 2010/11 and to $120 billion in 2011/12. Amongst the non oil imports, a comparatively slower growth is expected in the case of gold, silver imports and a stronger growth in the remaining segments.
6%
52%
9%
12%
The overall merchandise imports on balance-of-payments basis are expected to rise to nearly $354 billion (up 18 per cent) in 2010/11 and $414 billion (up 17 per cent) in 2011/12. On the export side, petroleum products would be slightly higher than that of imports at 24 and 16 per cent in 2010/11 and 2011/12 respectively.
100 80 60
Growth (in per cent)
40 20 0 -20 -40
Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10
Exports Imports
-60
20000 18000 16000 14000 12000 10000 Aug-10 Dec-09 Feb-10 Jun-09 Jun-10 Aur-09 Apr-09 Apr-10 Oct-09 8000
Rs crore
regained confidence and the Indian market rallied post announcement of general election results during May 2009.
Equity Growth
During 2009-10, all the equity markets witnessed uptrend, however, in different magnitude. The Indian benchmark indices namely BSE Sensex and S&P CNX Nifty gave year on year return of 80.5 percent and 73.8 percent respectively in 2009-10. The BSE Small-cap index recorded an increase of 161.7 percent in 2009-10. Among the sectoral indices, highest increase was recorded by BSE Metal index (210.2 percent), BSE Consumer Durables (159.7 percent) and BSE Auto index (150.6 percent). While the metal index reflected the strengthening of metal prices, the general upward trend in the economy and industrial production got reflected in increase in the capital goods and auto indices. The equity market has entered territory that it occupied exactly two years ago and in similar fashion the level of the stock market (the Bombay Sensitive Index or SENSEX) is close to 21,000. Relative valuations are on the richer side and hence analysts expect moderation in index returns for 2011 (in the 10- 15 percent zone from current levels).
IPOs in 2010
Indian IPO market has witnessed a strong comeback in 2010 after sluggish performance in 2009 as most of the companies rushed to capital markets to raise funds on encouraging stock markets. Jubilant FoodWorks, Thangamayil Jeweller, Talwalkars Better Value Fitness emerged as top 3 performers in 2010. Meanwhile, Coal India and MOIL were most successful IPOs which received overwhelming response from investor community. IPO 2011 Scenario India IPO 2011 outlook seems bright with at least 100 public issues in the pipeline, with an indicative size of around Rs 400billion. If the government maintains its Rs 400 billion target for the next fiscal too, total may be Rs 900 billion, up 27% from 2010. Thirty five prospectuses have already got the SEBIs clearance, while the remaining sixty five are awaiting nod. The country also celebrated its biggest IPO ever this year with the worlds largest coal producer Coal India, collecting $3.5 billion in October. Big private companies, like Jindal Power and Sterlite Energy which are planning an initial public offering in 2011, may have to lower valuation expectations as investors turn choosy, after profiting from state-owned companies issues that were priced attractively. IPO outlook for the year 2011 will see a massive bunch of issues hit the market unlike before and the issuers will have to price their trade more sensibly to attract investor attention.
-9.69 0.54 0.69 -10.92 -7.41 -9.16 -10.4 -13.59 -11.23 -11.46 -9.11 -9.33 -9.21 -9.92 -6.46 1.36 -8.53 -8.92 -11.22 -10.31 -10.26 -9.99 -12.9 -8.16 -11.24 -8.48 -8.7 -9.4 -15.4 -14.38 -9.79 -10.91 -10.71 -8.67 -8.68 -10.43 -10.28 -10 -12.14 -10.8
-11.01 1.7 2.06 -13.23 -10.59 -13.04 -10.08 -18.49 -15.68 -14.88 -10.65 -10.26 -12.22 -14.27 -6.72 3.1 -7.89 -11.62 -16.62 -9.95 -10.39 -13.03 -17.71 -9.72 -16.73 -9.91 -10.29 -11.33 -22.98 -22.71 -13.25 -16.16 -13.9 -10.59 -12.5 -15.36 -15.54 -10.12 -15.46 -12.27
-3.93 3.25 3.76 -2.75 -1.39 -1.82 1.69 -8.15 -6.05 -4.45 0.01 0.48 -1.27 -3 3.23 9.89 2.5 1.13 -3.89 1.84 1.33 -1.48 -6.76 0.77 -5.71 3.05 1.66 0.67 -9.91 -12.5 2.89 -6.04 -5.8 2.24 -0.96 -5.34 -7.4 1.36 -7.37 -0.38
3.24 4.75 5.46 5 9.14 14.49 11.15 9.65 4.61 5.65 18.34 18.01 13.18 10.59 17.8 17.26 14.86 14.19 4.87 12.23 12.11 9.2 6.05 11.66 6.45 11.39 13.6 10.92 -2.36 -5.39 13.25 7.41 2.66 14.54 17.33 6.88 7.46 11.87 3.71 16.57
-0.11 N/A 5.52 N/A -0.96 7.93 -3.49 -10.27 -14.5 -1.76 7.26 7.61 3.65 N/A 7.39 6.95 7.29 5.6 0.36 0.56 1.09 -2.62 0.78 4.51 -0.74 -3.13 0.17 -2.67 -5.92 -11.95 -5.61 -3.28 2.85 0.27 13.67 -1.66 -2.04 1.22 -7.51 -0.18
JPMorgan India Smaller Companies Fund - Growth Morgan Stanley A.C.E Fund - Growth Morgan Stanley Growth Fund - Growth Pramerica Equity Fund - Growth PRINCIPAL Dividend Yield Fund - Growth Principal Emerging Bluechip Fund - Growth PRINCIPAL Growth Fund - Growth PRINCIPAL Index Fund - Growth Templeton India Equity Income Fund - Growth Templeton India Growth Fund - Growth
-12.92 -11.2 -11.74 -10.24 -10.22 -13.69 -11.41 -10.29 -5.56 -9.87
-16.98 -13.8 -14.64 N/A -14.89 -17.82 -13.79 -10.47 -4.73 -11.89
-7.05 -3.17 -1.86 N/A -1.39 -7.6 -4.31 1.24 10.21 0.86
12.18 10.69 10.35 N/A 14.21 4.96 4.28 11.76 21.33 12.23
-5.91 N/A -0.19 N/A 4.81 N/A -8.12 0.04 10.68 9.19
Fund Name
No. of Schemes*
AIG Global Investment Group Mutual Fund Axis Mutual Fund Baroda Pioneer Mutual Fund Benchmark Mutual Fund Bharti AXA Mutual Fund Birla Sun Life Mutual Fund BNP Paribas Mutual Fund Canara Robeco Mutual Fund Daiwa Mutual Fund Deutsche Mutual Fund DSP Blackrock Mutual Fund Edelweiss Mutual Fund Escorts Mutual Fund Fidelity Mutual Fund Franklin Templeton Mutual Fund HDFC Mutual Fund HSBC Mutual Fund ICICI Prudential Mutual Fund IDBI Mutual Fund IDFC Mutual Fund ING Mutual Fund JM Financial Mutual Fund JPMorgan Mutual Fund Kotak Mahindra Mutual Fund
31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10
8.83 50.13 29.61 29.35 4.12 576.89 50.21 73.92 1.35 62.85 276.68 2.14 2.03 89.01 394.4 878.83 47.29 658.41 20.52 173.48 13.86 64.54 51.96 265.89
30-Sep-10 30-Sep-10 31-Oct-10 30-Nov-10 30-Sep-10 31-Oct-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Nov-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Nov-10 30-Sep-10 30-Sep-10
10.20 46.36 41.39 29.90 5.11 613.55 49.65 77.19 3.19 65.21 266.74 2.15 1.98 85.36 421.42 931.06 48.10 697.28 22.00 183.98 14.68 63.30 84.48 284.30
-1.37 3.77 -11.78 -0.55 -0.99 -36.66 0.56 -3.26 -1.84 -2.36 9.94 -0.01 0.05 3.65 -27.00 -52.22 -0.81 -38.87 -1.48 -10.51 -0.82 1.24 -32.52 -18.41
L&T Mutual Fund LIC Mutual Fund Mirae Asset Mutual Fund Morgan Stanley Mutual Fund Motilal Oswal Mutual Fund Peerless Mutual Fund Pramerica Mutual Fund PRINCIPAL Mutual Fund Quantum Mutual Fund Reliance Mutual Fund Religare Mutual Fund Sahara Mutual Fund SBI Mutual Fund Sundaram Mutual Fund Tata Mutual Fund Taurus Mutual Fund UTI Mutual Fund
31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10 31-Dec-10
31.93 186.95 3.28 23.61 3.01 23.06 11.09 57.64 1.17 1020.66 104.11 3.16 414.98 145.29 208.55 25.33 653.87
30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Nov-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Sep-10 30-Nov-10 30-Sep-10
35.43 197.27 2.75 23.51 3.05 20.94 6.30 56.42 1.19 1077.49 107.80 7.56 421.00 142.41 219.64 23.68 676.18
-3.50 -10.32 0.53 0.10 -0.04 2.11 4.78 1.22 -0.03 -56.82 -3.69 -4.40 -6.03 2.88 -11.09 1.65 -22.30
INVESTMENT NEWS Global investors buy stocks at record high on rising outlook
The Securities and Exchange Board of India, nations market regulator stated recently that the Global funds purchased a net 2.24 billion rupees ($49.2 million) of Indian equities on Feb. 4. It stated that foreigners bought 25.8 billion rupees of shares, while they sold 23.5 billion rupees. Overall in 2010, the global investors bought a record 1.33 trillion rupees of shares, raising the benchmark index 17 percent and making it the best performer among the worlds 10 biggest equity markets. They invested 464 billion rupees in bonds last year.
CONCLUDING REMARKS
The overall performance of the Indian economy in 2009/10 was beyond expectations. The farm sector which was forecasted to contract showed resilience, growing by 0.2 percent despite the weak South West monsoon. The non- farm sector also followed the same line with strong performance. It is estimated that the Indian economy would grow at 8.5 percent in 2010/11 and 9.0 percent in 2011/12. In the current fiscal year, agriculture will grow at 4.5 percent, industry at 9.7 percent and services at 8.9 per cent. The beginning of the new decade heralds the slow, but steady end of the worst recession in the past 60 years. Global GDP, after declining by 1.1 per cent in 2009, is predicted to increase by 3.1 per cent in 2010, and 4.2 per cent in 2011, with developing economies growing thrice as fast as the developed economies.
Disclaimer - All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. This is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment. This document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. It may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance.
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