Adit Jain - Perspectives

Different Strokes - STRUCTURAL INITIATIVES
As explained in our recent quarterly update, we expect gross domestic product to rise by 6.4% in 2017-18 and a slightly higher rate in the coming year. Output understandably took a bump in the wake of demonetisation and the subsequent roll-out of goods and services tax (GST). However, we believe these are largely behind us and recovery, going forward, should be robust and sustained. The fact is, consumption has been strong and constitutes the principal driver for growth with investment lagging behind. Be that as it may, in the years ahead the impact of certain government initiatives will play out favourably, as this paper will in subsequent paragraphs seek to explain.
The perception is that fresh investments have lagged behind and that spending on plant and machinery remains subdued. However, the reality, we believe, is different. With demand continuing to grow companies are clearly producing more goods from existing capacities. This is by virt…

For whom the bell tolls - NEW MARKETS
Twenty-five years ago, when I first began visiting Hong Kong and Singapore to provide briefings at regional headquarters of multinational corporations, I realised from the extent of their commitment that this region would soon become core to their activities. This appears to have finally happened. This paper shares some drawings about the rise of emerging markets and their implications based on the growth forecasts produced by the International Monetary Fund (IMF).
America is currently the world’s largest economy valued at USD 19.3 trillion. The next largest, China, produces USD 11.9 trillion worth of output. Based on growth rates, America in 2017 generated new markets aggregating USD 737 billion whilst China produced USD 705 billion. The total rise in global output was estimated to be USD 3.9 trillion. As of now, it would be correct to say that advanced economies generate the greater demand of goods and services every year. However, that is all abo…