macro indicators of indian economy
TRANSCRIPT
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8/8/2019 Macro Indicators of Indian Economy
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Key Indicators of Indian
Economy.
1)
High Auto sales nos.2) High car sales nos.
3) High commercial vehicles nos
4) Consumption pattern
5) Demographic
6) GDP Growth
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Impact of Increase in auto sales number
Auto sales has ended on a very good note for Indias Automobile industry, whichregistered a increase of sales since Jan 2010 onwards , as compared to thesales in 2009.
Indian automobile market has been showing an upward curve .
Increase in auto sales number reflects:
a) Masses have higher Disposable income.
b) Higher Consumption , impact On Overall Economic Growth.
c) Pay Scale Revision Has led to higher Disposable Income with the Masses.
d) NREGA Schemes , introduced by government has led to overall Ruralgrowth as people have employment , they have money to spend on FMCGproducts .
Conclusion
Over the longer term, comparatively low penetration levels, a healthy economicenvironment, and favorable demographics, supported by higher per-capita incomelevels, are likely to help the auto companies in sustaining their top-line growth.
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Two Wheelers
% annual growth in sales
'08-09 '09-10 '10-11*
*Apr-Jul
2.6
26.028.3
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High Car Sales Number
India is a country on the move. In the yearsup to 2015, we expect to see Indianautomobile production increasing by eight
percent per year on average . Month on Month Increase in numbers reflects
growing demand
Impact High Disposable Income within all segments.
Demand for consumer Durables .
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Passenger vehicles
% annual growth in sales
'08-09 '09-10 '10-11*
0.2
25.633.8
*Apr-Jul
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Impact ofHigh commercial vehicle sales nos.
Rise in the sales of commercial automobiles sector's sales arerising since oct 2009 . It is a positive sign for the overalleconomic growth.
CV sales is intrinsically linked with activities in the infrastructuresector& manufacturing sector, which is a key driver of the
economy.
Rise In CV sales also reflects growth in manufacturing
sector , which is also seen by IIP numbers Manufacturing sector rose by 18.5%
Indicates High Demand for Products across the country ,reflecting momentum in the economy.
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RISING SALARIES
Salaries of PSU
employees
14.70%26.00%
31.20%
2006-072007-08
2008-09
% annual increase in Per capita emoluments
Source-Economic Survey
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Consumption Pattern
The consumption patterns in India and what people wish to spend on isgetting changed, with the line dividing the Indian urban and ruralconsumer.
The aspirations of Indian consumer are becoming homogeneous .
Previously urban segment which comprises of 30% used to consume 2units and non urban segment which comprises of 70% used toconsume 1 unit . We can observe a consumption pattern shift nonurban consumers are consuming products & services on the pattern ofurban consumer which is 2 units .this is resulting into high demand forauto sales , FMCG products , consumer durables , consumer
discretionary.
Indian consumer has more money , more choice & different attitude.
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Demographic changes
Pattern would change by 2015.
Working Population 18-35 years will increase significantly.
More than 60% of the population would be younger workingpopulation. this trend which is continuous trend for coming
decade will help economy towards high consumption , products& services.
Younger population has more aspirations .
Demand for consumer durables , luxury items etc will rise.
According to NCAER study by 2015 , 15 Cr young people will be
in job market who are in age group of around 18 years now. Massive increase in consumption over longer period with million
of youths getting in employment and earning cycle.
I.T, manufacturing and financial services will provide maximumjobs creations.
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LCD TVs sales in lakhs
2008 2009 2010
7
*Projected
15
30
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Air Conditioner sales
(Millions)
2008 2009 2010
2.5
*Projected
2.25
3
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Rural Jobs
Expenditure on MNREGA
'10-11*
'09-10
'08-09
'07-08
Figures in Rs Crores*Budget
estimates
15,857
27,250
37,938
40,100
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Rural Migration (Educated)
Latest study of NCAER is indicating that incoming decade rural educated youths willmove to Towns for services and businesses.
This will result into demand for housing intowns and further commerce opportunities.
Small towns will expand and local economywill boom.
More budget housing demand and demandfor financial services. B-Towns will maximumgainers.
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Rural Growth
BENEFITS OF GROWTH
Higher disposable income and more stability ofearnings , leading to
Increased sales of goods (durables and housing)and services (Telecom, Education and Healthcare )in rural areas.
Up gradation of lifestyle which would be reflected inthe emergence of rural malls. Media andEntertainment opportunities would also open up inthe rural areas.
A higher rural savings rate would also provideopportunities for the financial sector.
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AIG India Equity Fund
The Scheme would follow an actively managed approach allowing it the
flexibility to pursue opportunities across the entire market capitalization
spectrum.
It will have no biases towards any particular style, sector or market cap.
It will continuously look across the value and growth spectrum to keep a
balance in the portfolio so as to maintain its performance over various market
cycles.
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AIG Infrastructure and Economic Reform
Fund Focus on key infrastructure growth areas and identify visible long term growth
stories at reasonable valuations
Theme of the fund: to uncover companies that will feed into the infrastructure boom,
including but not necessarily only infrastructure companies
Be adequately diversified across a number of sectors within infrastructure segmentsto reduce concentration and risk to any one or a group of related sectors
Long term view with dynamic re-allocation depending on price targets andapproaching new opportunities as time goes by
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