INSIGHTS OF THE INDIAN ECONOMY

ATMANIRBHAR BHARAT A LONG WAY TO GO The COVID-19 pandemic is driving the world economy to retreat from global economic integration.   Although this retreat will not mark the end of globalization but globalization can be reversed, at least partially.   Globalization consists of following elements: Cross border flow of trade, investment, data, ideas, technology, working people, tourists and students. Long before the Covid-19 pandemic, the United States has embraced an “America First” policy, shifting away from trade liberalization and moving toward protectionism. The COVID-19 pandemic simply adds further momentum to the de-globalization trend. There is no alternate to peaceful coexistence. Coexistence facilitates the desire to understand the world and the desire to reform it are the two great engines of progress, without which human society would stand still. India in the process also joined this race and people have started boycotting overseas goods in the name of m...

“MAKE IN INDIA” Will the dream come true?   Despite, several efforts by the central government in the last five years, the “Make in India” concept yet has not been materialized meaningfully. The share of manufacturing sector to country's economy is around 15% only as on to date. Post Covid-19, now the time has come to give manufacturing as a field the highest priority. It is the only way to revive the Indian economy and keep its growth stable. COVID-19 has created an opportunity for the manufacturing sector to evolve as the entire world is looking for an alternative to China. India cannot afford to let this opportunity slip but we are have so many bottlenecks to overcome, to make our dream come true. Let’s take a look at these bottlenecks: §   Absence of stable long-term rules and policy for FDI. One must note that the Referee must not change the rules of the game midway and that applies with our government as well. §   Red-Tapism and absence of meaningful ease of Doing B...

VALUE INVESTING IN NEW ECONOMY If we see the recent trend in valuation of corporate it seems that old school of valuations are becoming obsolete now.   ·          Low PE ·         High Dividend yield ·         Price to Book ·         EPS ·         CEPS The above parameters are no more benchmarks in determining the value of a corporate. Now, it's the story which determines the valuation. See the recent example of the JIO dealings. You will observe that JIO is selling a story and the world's renowned investors believing in the story. You may agree or you may not, the consensus of pessimists & optimists determine the value of a company. See another example of BYJU'S. The company has a revenue of about Rs.3100 cr.   Its valuation is estimated around 10 Bn USD!   PAYTM is having a value of approx...

TRANSITIONAL PHASE OF "DIGITAL TECHNOLOGY" We think that we’re in a new long-term technological revolution, which we call the age of connected intelligence that means we think that there’s going to be a lot of connected devices.   Think the “Internet of Things” and lots of more data being produced and processed in the cloud, and more access to that data for everyone. Ultimately, all of that data being analysed by these very advanced hardware and software systems manifests itself in artificial intelligence and better decision making. A Transition Phase for IT Industry and some significant changes in the IT Sector are likely to come. There will be many challenging demands in several sector from the point of view of IT services. Access to computer system resources through cloud computing will be in high demand & data demand in cloud will increase manifolds for numerous sectors.   A new term which we have come across these days is "contact less economy". One...