India is on Course to Overtake China as the Worldâ€™s Fastest Growing Large Economy
- Sunday, May 21, 2017
Indiaâ€™s economy is moving in the right direction and Indian equities should remain relatively resilient compared to other regional economies. This is particularly true as emerging markets come under pressure from the US interest rate rise. India is also less exposed to the fortunes of China.
India grew at a faster than expected pace in Q3, keeping the country on course to overtake China as the worldâ€™s fastest growing large economy. The Indian economy expanded by 7.4% in the three months to September. The IMF is expecting India to grow by 7.3% this fiscal year and 7.5% in 2016-17.
The great investment appeal for India remains its huge and growing consumer class plus its abundance of well managed globally competitive companies. The opportunity for growth over the long term is significant.
Markets were surprised by the recent cut in interest rates in India from 7.25% to 6.75%. The Indian central bank, The Reserve Bank of India, stated that strong domestic demand would be needed to counter the recent weaker global growth.
Chris DaviesChartered Financial Adviser
Chris is a Chartered Independent Financial Adviser and leads the investment team.