13 Sep 2022

 

At a time when the world is dealing with inflation rising, and growth rates faltering, India seems to stand out.

“…no doubt there is a sandstorm blowing in the global economy and we will get impacted if this sandstorm persists, but as and when the sandstorm subsides, the Indian economy will look like just an oasis in the desert,” said Nilesh Shah, the group president and managing director of Kotak Mahindra Mutual Fund.

Why, though?

Between 2008 and 2022, India is the only country which has improved its debt to GDP ratio; this includes countries like the UK, the US, Canada, Germany, France Italy, Brazil, Australia, Mainland China, South Korea, Mexico and Spain*.

Corporate India has reduced its debt by 12% in this period, while retail India has cut its debt by 6%*.

India has also seen its GDP grow, and is now the fifth-largest economy in the world with a 3.5% share in global GDP. In 2014, India was the 10th largest economy in the world, with a 2.6% share in global GDP**.

Among the cities which have office space under construction, Hyderabad, Bengaluru, Delhi NCR, and Chennai are among the top 10^.

India is also home to some of top 10 cities with high GDP growth in 2022. These include Hyderabad, Bengaluru, Delhi, Mumbai, Chennai and Kolkata^^. 

In 2021, only Delhi and Bengaluru were among the Indian cities which were a part of the top 10 cities with high GDP growth^^.

 

 

 


 

*Source: IF, BIS, IMF, National Sources, Data taken from end Q1, 2008 and end Q1, 2022

**Source: IMF WEO, SBI Research; For India, it is FY2023

^Source: Bloomberg

^^Source: Oxford Economics

This article is for information purposes only. The information provided herein is derived from public sources, believed to be from reliable sources. However, no representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. Views expressed herein involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied herein. Kotak Mahindra Mutual Fund/ Kotak AMC is not indicating or guaranteeing returns on any investments. Past performance may or may not be sustained in future. Readers should seek professional advice before making any investment-related decisions and alone shall be responsible for any decision taken.

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© Kotak Mutual Fund.2022
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
© Kotak Mutual Fund.2022
Mutual fund investments are subject to market risks, read all scheme related documents carefully.