The implementation of Goods and Services Tax (GST) in India would result in “incredible” earnings up to 20 percent for companies, according to Mark Mobius, executive chairman of the Templeton Emerging Markets Group. Not only this, the Nifty would hit 10,000-13,000 mark by the mid-next year after the implementation of GST and Indian economy would continue to grow fast the way it is doing now, he believes.
Mobius today told ET Now that to assess the impact of GST on companies, one should be flexible and look at the earnings of each company individually. However, he said that in the next 2-3 years after the implementation of GST, earnings of the countries could grow by 20-40 per cent. Mobius is not expecting that the GST would be implemented soon, but he is assured that it would be don. “Can’t expect a clean and immediate implementation of GST,” he told the channel.
Mobius expects that GST would be implemented by the end of 2017. Talking about the health of the Indian economy, Mobius asserted that the country’s growth is “tremendous” and it would continue to grow fast in the coming years.
While noting that the banking sector in India “looks good”, Mobius said that liquidity is the “only major issue” for large funds to invest in India. However, liquidity will rise with an increase in per capita income of people in the country, he said.