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30
October 2018
 |
India's long-term growth story (The Total Investment & Insurance
Solutions)
India's long-term growth story remains robust
despite global headwinds as well as rupee depreciation and high oil prices,
says a report. According to Dun & Bradstreet's Economy Forecast, the
balance sheet of banks, corporate and government remains strained while the
gross non-performing assets (NPAs) have increased significantly.
"Strain on India's external balance sheet
has increased due to slide in forex reserve, outflows in foreign investment,
increased current account deficit (CAD), rupee depreciationand high global
crude oil prices," Dun & Bradstreet India Lead Economist Arun Singh
said. Sectors laden with high stressed assets are engineering, infrastructure
NSE 1.86 % , construction whose debt serviceability and profitability have been
impacted.
The report further said capital flows have
been negative for the second consecutive quarter in JulySeptember and foreign
investors have also pulled out strongly from the Indian markets.
Moreover, mounting debt pressures, rupee
depreciation and persistent rise in global crude oil prices are likely to keep
the merchandise trade deficit high.
"This has increased the stress on
India's external sector. These issues are not going to be resolved soon till
concerns on geopolitical issues and trade wars remain heightened," the
report noted.
The report however noted that despite the
global headwinds, India's long-term growth story remains robust.
"To continue the growth trajectory, it
is the time that investment accelerates as it will directly provide jobs for
the millions of population entering the workforce and indirectly accelerate the
consumption demand which will keep the growth momentum rolling," Singh
said. The Total Investment &
Insurance Solutions
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