‘India to have faster economic growth among BRICS’

brics-modi1A strong central government and a stable monetary policy has given India an edge over other BRICS countries to achieve swifter economic growth, says leading financial services firm JP Morgan.

“Within the next 12 months, I would expect the Indian equities to go higher. Domestic factors clearly will play an important role. If we take the big BRIC markets as an example, I have the strong conviction that Indian momentum is going to be better next year than China, Russia and Brazil,” said Tai Hui, MD and chief market strategist, Asia, JP Morgan.

Buoyed by optimism about second generation economic reforms, Indian markets have gained ever since India’s Prime Minister Narendra Modi took charge in May; the Sensex has risen by 21% so far this year.

The last couple of months, since the installation of the new government, has seen a massive inflow of investments into its equity market. Foreign Institutional Investors (FII) have pumped in $ 12 billion into India’s equity market this year –a trend Hui expects to continue.

“On an annual basis, India typically gets around $20 billion gets around $20 billion flow into equity markets. The $12 billion flows is reasonable. I do think in the second half, we will continue to see inflows…,”said Hui.

Given these trends, Hui added that India’s GDP could grow at over 6% next year.

Author Profile

India Writes Network
India Writes Network
India Writes Network (www.indiawrites.org) is an emerging think tank and a media-publishing company focused on international affairs & the India Story. A venture of TGII Media Private Limited, a leading media, publishing and consultancy company, IWN has carved a niche for balanced and exhaustive reporting and analysis of international affairs. Eminent personalities, politicians, diplomats, authors, strategy gurus and news-makers have contributed to India Writes Network, as also “India and the World,” a magazine focused on global affairs. The Global Insights India (TGII) is the research arm of India Writes Network. To subscribe to India and the World, write to editor@indiawrites.org