We are seeing a fair amount of percieved pessimism and despondency in Business and Political Press writings! This is definitely true on the external sectors of the Economy.The reasons are very obvious.The western disturbance due to delays in opening retail,insurance and other vital sectors to FDI and struggling Capital Markets can be very well understood. Even our Economist PM has got a new tag of "Underachiever" by the General Media Moghul.
In India hoever if we look inwards, things are really "Business as usual" . The Economy is moving at a rate of 6-5% or so . Consumers are buying what they used to.People are still cursing the politicians and yet queing up for the Friday releases and brands are doing reasonably ok, if not as heady as in 2007 pre-Lehman Brothers! The UNO report still says India is the third most sought after investment destination. So where is the disconnect between "our right to grow at 9%' and the Ground Reality?
My view is very simple here as the T&M business person. The T&M industry growth is largely driven by the growth in industries it tends to serve.We saw a one-way steep growth in the late 90s (during Narasimha Rao Govt) ,and 2002-08 when we had NDA
and UPA1 at the helm. Personally I think our industry grows when Defense,Telecom and the Government Sectors tend to spend the alloted money,irrespective of which party really is at the Center.The underlying thing is combination of our preparedness and Contracting Parties spending.Inspite of deregulation and privatisation, it is the linkages to PSU, the Govt and the DGS&D who finally give ACTUAL businesses to the T&M vendors.
And this group is not going to be affected by the GDP number being this or that much.As the macro figures of Budgets to all major depts of the Govt, and the PSUs under them is rising steepily.Yes there is a little pause, but I think the slowdown to our business is overplayed as the media overanxious. I think India has enough resilience at work to ride over this time,while keeping Super Cycle in mind.
In India hoever if we look inwards, things are really "Business as usual" . The Economy is moving at a rate of 6-5% or so . Consumers are buying what they used to.People are still cursing the politicians and yet queing up for the Friday releases and brands are doing reasonably ok, if not as heady as in 2007 pre-Lehman Brothers! The UNO report still says India is the third most sought after investment destination. So where is the disconnect between "our right to grow at 9%' and the Ground Reality?
My view is very simple here as the T&M business person. The T&M industry growth is largely driven by the growth in industries it tends to serve.We saw a one-way steep growth in the late 90s (during Narasimha Rao Govt) ,and 2002-08 when we had NDA
and UPA1 at the helm. Personally I think our industry grows when Defense,Telecom and the Government Sectors tend to spend the alloted money,irrespective of which party really is at the Center.The underlying thing is combination of our preparedness and Contracting Parties spending.Inspite of deregulation and privatisation, it is the linkages to PSU, the Govt and the DGS&D who finally give ACTUAL businesses to the T&M vendors.
And this group is not going to be affected by the GDP number being this or that much.As the macro figures of Budgets to all major depts of the Govt, and the PSUs under them is rising steepily.Yes there is a little pause, but I think the slowdown to our business is overplayed as the media overanxious. I think India has enough resilience at work to ride over this time,while keeping Super Cycle in mind.
