Turmoil in financial market to continue for two-three years: Tucker

The present turmoil in the financial market will continue for the next two to three years as it is not a short-term phenomenon of a couple of months. However, the Indian economy will remain resilient and it may grow at more than 8%, Mark Tucker, group chief executive, Prudential plc, said on Friday. Tucker was in India to attend the tenth anniversary celebrations of the operations of ICICI Prudential Asset Management Company, a joint venture of Prudential with frontline private sector bank, ICICI Bank.

In an exclusive interview to FE, Tucker said the global economy has faced several challenges in the past, including global recession. ?And, the impact of the credit crunch is the latest challenge?, he said. Tucker said that the Indian economy will remain resilient and ?we have full confidence in the Indian economy.?

With regard to rising oil prices in the global market, Tucker said, ?It is difficult to make any prediction on the oil prices because there is enormous volatility?. A rethink is going on relating to the phenomenon of de-leveraging of the financial system and its effect on the real economy. However, the investors need to adopt a long term approach on the market, he said.

On the impact of the hardening of interest rates on the equity market, Tucker said the monetary techniques in managing the economy are important in all parts of the globe. However, the interest rates were coming down in the US and UK. ?These countries are watching the global markets carefully. Global competition will remain intense,? he said.

He said globally, inflation is a matter of attention. ?Inflation has been managed well in the past in India and it can be managed now too?, he said.

There is lot of opportunity for the Indian mutual fund (MF) industry to grow, he pointed out. Around 6% to 7% of household savings were being invested in Asia as against more than 25% in the developed economies. Hence, there is a lot of scope for the MF industry to grow as the young population is growing fast in India.

?Prudential sees a lot of potential for growth in the MF business?, he said.

He said that ICICI Prudential AMC has emerged number two in the pecking order of the MF industry. The fund house has performed well both in the highs and lows of the market, with product innovations. ?We plan to strengthen our operations in India?, he said.