THE INDIAN STOCK MARKET gained 13.8% in 2019 despite high volatility. Making gains in 2020 doesn’t look easy with indications of domestic and global headwinds: slow growth in India, and geopolitical tensions between the U.S. and Iran. However, Motilal Oswal, managing director and CEO of Motilal Oswal Financial Services Ltd (MOFSL) which he co-founded with Raamdeo Agrawal in 1987, is optimistic about the world’s seventh-largest stock market. In an interview with Fortune India, the 57-year-old Oswal says the stocks of many companies, mostly with good quality businesses, are trading at a discount to their long-term averages. It is a great time to construct a well-diversified equity portfolio for long-term wealth creation, he says. Edited excerpts:
Economists say India’s gross domestic product (GDP) needs to grow at over 10% to make the nation a $5-trillion economy by 2025. How realistic is this goal?
The government’s vision of the nation to become a $5-trillion economy by 2025 is definitely challenging but not impossible. We believe India is well on its path towards achieving this target, albeit it may get there a year or so later. India’s economy crossed $2.6 trillion in 2018-19 and would need to grow upwards of 10% on a nominal basis over the next five years to reach the $5-trillion mark.
While the near-term growth has been slower than expected, the longterm growth prospects continue to remain sanguine. Some of the key components of the economy which would-be contributors to this growth would be consumption, private investment, and exports, as government expenditure alone cannot help in achieving this mega target.
Denne historien er fra February 2020-utgaven av Fortune India.
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Denne historien er fra February 2020-utgaven av Fortune India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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