1) India's 7 per cent growth rate may seem modest, but it's enough to attract the interest of global investors, analysts say. Morgan Stanley retained its "overweight" position on India, saying the country scores the "best" in macroeconomic risk amongst all 27 emerging markets countries.
India also scores well relatively in its corporate profitability amongst emerging markets countries, it added. India growing at a 7.4 percent clip looks on firmer ground and in good nick to tackle external pressure.
2) The Fed's rate hike is based on the belief that the US economy is doing well. Faster growth in US ‐ the world's biggest economy ‐ augurs well for India. It is said that the recovery in US economy will especially be beneficial for domestic IT companies.
3) During a press conference after the Fed decision was announced Yellen assured markets that the Fed will move in “prudent” and “gradual” steps. The prospect of gradual rises could bring some stability to emerging markets. "The interest rate hike in the US, though only 25 bps, marks an important shift in Fed policy which has held interest rates constant since June 2006. This policy shift is significant because it marks the beginning of an era of interest rate hikes. "This will result in the continuing strengthening of the US dollar, and will result in a boost of exports from emerging markets like India... while potentially limiting the growth of imported goods. This first order effect will likely result in an improvement in the balance of trade for India.
4) New Delhi is hoping to raise India’s share of world trade to 3.5 percent by 2020 from 2 percent presently. Meeting its target of $900 billion in yearly exports by 2020 would require India to sell twice as much to the rest of the world as it does today.
5) Years of easy money policies and money printing by the US Federal Reserve have left trillions of dollars sloshing around the global financial system, turbo‐charging emerging markets like India, and creating froth in all asset classes ranging from stocks, to real estate, to art and Bitcoins.
India also scores well relatively in its corporate profitability amongst emerging markets countries, it added. India growing at a 7.4 percent clip looks on firmer ground and in good nick to tackle external pressure.
2) The Fed's rate hike is based on the belief that the US economy is doing well. Faster growth in US ‐ the world's biggest economy ‐ augurs well for India. It is said that the recovery in US economy will especially be beneficial for domestic IT companies.
3) During a press conference after the Fed decision was announced Yellen assured markets that the Fed will move in “prudent” and “gradual” steps. The prospect of gradual rises could bring some stability to emerging markets. "The interest rate hike in the US, though only 25 bps, marks an important shift in Fed policy which has held interest rates constant since June 2006. This policy shift is significant because it marks the beginning of an era of interest rate hikes. "This will result in the continuing strengthening of the US dollar, and will result in a boost of exports from emerging markets like India... while potentially limiting the growth of imported goods. This first order effect will likely result in an improvement in the balance of trade for India.4) New Delhi is hoping to raise India’s share of world trade to 3.5 percent by 2020 from 2 percent presently. Meeting its target of $900 billion in yearly exports by 2020 would require India to sell twice as much to the rest of the world as it does today.
5) Years of easy money policies and money printing by the US Federal Reserve have left trillions of dollars sloshing around the global financial system, turbo‐charging emerging markets like India, and creating froth in all asset classes ranging from stocks, to real estate, to art and Bitcoins.
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