India’s economy: What does 2017 hold in store?
Driven by demonetization, India’s economic rejuvenation points toward a positive long-term outlook
By Shekhar Sambhshivan, Investment Director, Asia ex Japan ex HK/China
By any measure, 2016 was a year of seismic economic change for India, particularly with the surprise “currency exchange program” in November, also referred to as demonetization. Three months after this unprecedented move, the overhang already seems to be behind us. Industrial production surged sharply by 5.6%, capital goods within manufacturing recorded 15% growth after several months of contraction, and electricity generation picked up to 8.9%. Overall car sales also reported an increase of 16% year-over-year. These positive macro points confirmed the view of the Equity Investment Team in Asia that the impact of demonetization would be transitory in nature.
Structural growth in India — especially domestic consumption — remains promising over the long term. Looking ahead, we expect...
Continue reading the full article, India’s economy: What does 2017 hold in store?, on Invesco US Blog.
Originally Published at: India’s economy: What does 2017 hold in store?