Indian economy has been resilient over the last few decades and growth has been largely due to higher local consumption. Indian exports have been rising as well but imports (mainly energy imports) have left major dent is India’s foreign exchange reserves. The declining value of Indian currency is another major trouble the financial planners in India.
The Reserve Bank of India announced interest rate hike in its recent policy meeting. Real estate, infrastructure projects and corporate investments will face trouble due to rising interest rates but the rising consumption still helps the Indian economy. GST collections indicate strong economic activity after COVID-19 pandemic led to major decline for government revenues.
High Inflation Remains Major Concern
As rest of the world, Indian government is also trying its best to tame inflation. In its recent review, the Reserve Bank of India indicated that adequate policy changes will be made in order to keep inflation under control. In July, consumer price index (CPI) was recorded at 6.7 percent, mainly due to decline in food prices.
Despite tough business climate and higher inflation, many stock market-listed Indian companies have reported quarterly results as per market expectations. This has been one of the main reasons for Indian stock markets to remain firm despite RBI’s interest rate hikes. Low base during COVID-19 pandemic (that mainly impacted business activity during 2020 and 2021) is considered as another reason for many Indian companies reporting strong set of numbers.
Private Sector Employees More Inclined to Shift Job
As per a story published in Fortune India magazine, 37 percent of Indian private sector workforce is planning to shift job in the next 12 months. The survey conducted by PwC India indicates that many young office workers are planning to shift to remote job permanently. During COVID-19 pandemic, remote working culture registered a major boost and many workers might remain on remote working schedule in future as well.
Young generation is more likely to take up jobs that are challenging. Youngsters are inclined to take risks. They account for major share of investments in new assets classes like crypto-currencies, commodity ETFs, stock options and mutual funds. Another trend emerging among youngsters is about online gaming and sports betting. There are many platforms that offer games targeting Indian audience and they offer support in Indian regional languages as well. Before placing bets, users should take a look at exciting and trustworthy online casino sites, in order to choose the best platform. Online sports betting has been picking up pace in India as it offers a safe and transparent option for sports fans.
Indian youngsters have easy access to information and they are quick learners. The growth potential of Indian technology, infotainment and online retail sector is evident from the investments big technology & retail companies have earmarked for Indian market. Online retailing has been growing fast for the last few years and venture capital investments in new platforms have remained steady over the years. Amazon and Flipkart are the two main competitors in the online retail segment but there are new companies ready to enter the highly competitive online retail business.
The consumption story for India will remain valid for future as well because there are millions of Indians who will be having higher disposable income in the future. While there are issues like inflation, rising cost of living and expensive housing, the incomes are expected to rise as well. The growth story for India might face hiccups but the long term trend is surely positive.
