India is well-placed to withstand external shocks: Jim O’Neill

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Updated: August 29, 2017 5:02:35 PM

Jim O'Neill is betting at a growth of 9-10% for the Indian economy going forward.

rupee, rupee fair value, rupee value, market, market news, financial expressJim O’Neill feels that Indian economy is in a slightly better position to withstand external shocks . (Image: Reuters)

The domestic benchmark indices had touched all-time high’s last month post which many industry experts and market voices said the markets may see a healthy correction anytime soon. Jim O’Neill, the Former Commerce Secretary, UK Government, says that the broader markets have had a very strong growth with very low volatility and at some point that will come to an end. Speaking specifically about India, he said,”I feel that India is in a slightly better position to withstand external shocks.”

Crediting the Prime Minister Narendra Modi for structural changes, he told ET Now,”I think particularly now that Modi has embarked some reforms with the things like GST and to some extent also the circle demonetisation last year, it has now opened the idea to investors that Modi is prepared to do all with big structural challenges for India’s future.” The veteran is betting at a growth of 9-10% in the Indian economy going forward.

Speaking to ET Now yesterday, Madhusudan Kela, the chief investment strategist at Reliance Capital said,”There is no better time for an average investor to do well in India.” He predicts that the Indian economy will top $5 trillion by 2025. To put that into perspective, the economy will more than double in less than 8 years! At the end of 2016, India’s GDP stood at $2.26 trillion.

He’s not the only one betting big on the Indian growth story. Kotak Mutual Fund’s Nilesh Shah called out to the investors to reap-in 15-20% returns from the market. Speaking to the channel, he said,”We want India to be owned by Indians. We want retail Indians to be sitting on 15-20% roller coaster, even though the ride is scary and volatile. Because if you stay back, in the end it will be a pleasant ride.”

The BSE Sensex shed more than 1% and closed at 31,388.39 points on Tuesday. All of the 31 scrips of BSE Sensex ended in red and all eleven sectoral indices of NSE settled down with losses up to 1.4%.

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