Tue. Aug 4th, 2020

GDP growth set to bounce back to 7 per cent by next year; feels expert..

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Kolkata, 18 July, (HS) : Overcoming the possibility of a de-growth during the current fiscal, the GDP in India is likely to grow by 7 to 8 per cent during FY 22 when the Inflation is expected to hover around 6 per cent following some structural changes in the Indian economy.

This view was expressed here today by India’s leading financial analyst and expert Sudip Bandopadhyay, also the Chairman of Inditrade Capital Limited, while participating in a Webinar on ‘Emerging Opportunities in Indian Capital Market’,organised by premier Merchants’ Chamber of Commerce and Industry (MCCI).
Stating that there would be an increasing formalisation of Indian economy from FY 22, Bandopadhyay said from next year some blue chip companies would prosper more than the average concerns and the stock market would also look for a growth rate of around 14 per cent in view of a better prospect.
He said as the Indian economy was currently passing through certain structural changes, many domestic firms would stand to gain from further intensification of the US – China trade war from  FY 23 as many of them would try to reduce their dependence on China by then.
Even as the world was currently facing gloom and doom with COVID pandemic , many companies were also now looking for opportunities for further investment  in several sectors including those in chemical and pharmaceutical industries, Bandopadhyay said and claimed that several Indian companies were also flooded with incremental orders as more and more companies now sought  to reduce their dependence on China.
According to him, the country’s pharma,healthcare and insurance sectors would soon be able to  overcome their dependance on China before opening up good opportunities.
Replying to a query from Hindusthan Samachar, Bandopadhyay said the Indfian recovery story might not be as fast as that of the USA, but all out efforts were being made by the Narendra Modi government to raise funds to manafe its huge debt burden by reducing its stakres in some public sector companies.
Earlier welcoming the guest ,MCCI senior Vice President Aakash Shah expressed concern at the loss of market cap by about 25 per cent because of the Lockdown and said it also reduced the value of some blue chip stocks by 40 per cent and sought the way out.