Markets have fallen ! But ! 10 Reasons to be Bullish about India

1. Fastest growing (big) economy in the world in 2015, 2016

• World average: 2.4%
• Emerging & developing economies : 4.3% – 4.7%
• China : 6.0% – 6.3%
• India : 7.5%

2. Falling Commodity and Crude prices – Boon to India

• Crude oil to copper prices have dropped sending shock waves to Russia, Brazil,
  Australia, South Africa, Middle East.
• India’s import bill is shrinking
• Reduce our demand for dollars
• Repair the trade deficit.
• Govt. spending can go up

3. Control of Inflation

• WPI : Negative 4.9%
• CPI : 3.8%
• Unleash spending power for consumers

4. Rebooting of Inclusion

• Jan Dhan Yojana / Jan Suraksha Yojana, schemes have ushered crores of poor and
  disadvantaged Indians into the formal financial system.
• Relieve them from money lenders and unscrupulous Ponzi schemes.
• 18.2 crore Indians with bank accounts and 15.9 cr with RuPay debit cards.

5. Reduced Subsidy

• 4% of country’s GDP is in subsidies i.e about Rs 3,78,000 crores.
• Wastage, corruption, leakages gobbled lion’s share.
• Petrol, diesel linked to market prices.
• LPG subsidy by direct benefit transfer (DBT).
• Give up subsidy schemes.
• Move to shift Fertilizer subsidy and PDS to DBT.

6. Pension Fix

• India’s massive retirement supply challenge is being addressed.
• More people in EPF net (Rs 6500 to Rs 15000 limit increased)
• Tweaking of National pension scheme with tax breaks.
• Atal pension yojana scheme launched.

7. Unearthing the gold hoard

• Gold imports reduced to $37 billion from $ 56 billion in 2011-12.
• Gold monetization scheme and Gold Bond scheme introduced.
• Higher import duty on import of gold.
• People may shift to paper gold rather than gold bars and coins.

8. Domestic interest in stocks

• FII’s and global stocks pulled our market .
• People moving into Domestic equally through mutual funds – record amounts of money
  collected.
• 25 lakh equity portfolios added in 1 month.
• EPFO investment of 6.5 lakh crore in equity markets
• Expect to see domestic savings of $15-16 billion flow into equities every year.

9. Going Digital

• Roll out of national optic fibre network that will connect 2.5 lakh gram panchayats to high
  speed digital highway.
• Making available internet to Aam Aadmi.
• Direct benefits to citizen curbing corruption & bureaucracy.
• Payment banks.
• Move up the 20% of population using internet to over 50 – 60% in China,Brazil &Russia.

10. Efficiency & effectiveness of Indian law enforcement.

• Action against Sahara group.
• Shutting down Ponzi schemes.
• Pulling up of banks by RBI.
• More reforms on interest protection.