28Jun
indian economy

Indian Economy Is Ready For A Strong Comeback Under New Government

Not long ago when the new government was formed, and now all its positive effects are reflected all over the country in every sector. People appears to be more confident and optimistic for the growth of India in near future than before. This behavior of consumers are seen after a long duration of time. People are investing, purchasing goods and using their money to borrow new things now-days not like in the previous government.

Where the influence can be seen?

Banking Sector : Raghuram Rajan, the Governor of RBI unchanged the policy rates but reduced it marginally which induced people to go for big investments. This will lead to increasing number of applicants for the loans whether it is about home loan or the personal loans. The big change is repo rate remains unchanged at 8 % whereas SLR cuts by 50 – 22.5%. This will surely affect the economy in future.

Retail Sector : Not only the banking sector but also the Retail sector is facing the impact. The buying habits of people changed suddenly in a week. This may put positive effect in long run or not is cumbersome, but it is surely reflect the trust and confidence of the citizens.

Corporate Sector : Corporate venture also feeling the warmth of growth now days. Many corporate leaders attended the oath taking ceremony of the Cabinet Ministry looked in a good mood and showed their believe on the newly formed government. Also, the experts are predicting about the good growth in three-month horizons from July to September.

Capital Stock Market : All the above segments are directly or indirectly related to the stocks and shares. On June 5, 2014 Sensex hits record high above 25400 which is taken as a positive symptom for the investors. The Rupee is performing the best part among emerging currencies all over the world. The prices of precious metals like gold and silver are going down so that the middle class people can also make their minds to purchase. The companies listed in the major exchanges are expecting good growth in the business in the quarter of July to September. As every segment of stock and share market is directly or indirectly related to each other. This will show a variation in next six months to five years for sure.

Every sector which may affect the economic growth of the country got influenced and this may put a positive hike in it. The experts of this field are looking forward towards India for investment and other opportunities. For more trading tips you can read other posts.

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