Marking a remarkable victory all over the global market, India has made its mark throughout the world economy! Going through a number of crashes and emerges, the Indian Economy has at last managed to stand immovable. In another milestone for the Indian Economy, the Indian Stock Market has overtaken Germany to become the seventh largest in the world.
This victory for the Indian Stock Market will be marked with golden words in the pages of Indian economy and its history of ups and downs. We must agree that India has marked its own path to achieve what it has owned today. Indian markets have struggled for this recognition in a much higher manner before a decade.
According to a report by Bloomberg, India surpassed the equity market of Europe’s largest economy, Germany for the first time in seven years. After the UK leaves the European Union in March, France remains the only country from the bloc in the list of the seven big markets.
The move reflects India’s positive returns this year as companies’ reliance on domestic demand enabled them to avoid the meltdown in other emerging markets spurred by Federal Reserve tightening and a trade war between the U.S. and China. It also highlights the challenges facing the EU, including its future relationship with the U.K., a standoff with Italy over budget allocations and separatist clashes in Spain.
One cannot deny the fact that acts of focusing on entrepreneurship and promoting indigenization have also put India ahead in the race. It is projected that India’s economy will grow at 7.3% in the year 2019, which is almost 4.5 times than that of the German economic growth of 1.6%. These figures undoubtedly speak out loud of India’s position in the Global economy and its rapid growth.
Though the PM Modi Government has been constantly targeted for its adopted economic reforms within the 4 years of its governance, the reforms adopted have resulted in bringing positive wave in the economic structure of the country. Several studies have shown that economic reforms under the PM Narendra Modi government have helped the country to pull millions of people out of poverty.
In a year dominated by trade protectionism and punitive tariffs by Donald Trump’s administration on China, it’s little wonder that investors have turned cautious over countries with a heavy dependence on exports.Germany derives more than 38% of its gross domestic product from exports, based on 2017 data from World Bank. The corresponding ratio for India is only 11%, meaning much of the stock-market opportunity in the country comes from domestic consumer stories.
Source: Business Standard.com