NEW YORK: C. Jayaram, executive director for Kotak Mahindra Bank and head of the Wealth Management Group for Kotak Mahindra, said this while making a presentation on "Investment Opportunities in India's Capital Markets" at the Indian consulate general here. The event was hosted by The IndUS Entrepreneurs (TiE) Tri-State and the consulate general of India in New York. According to Jayaram, the Indian economy is relatively better off than most of the world. The macro fundamentals that support India are "the interest rates, which are close to the bottom, the excess liquidity in the system, the inflation rate, which is likely to remain benign, and the rupee, which is displaying strength", he said. The foreign exchange reserve, as of April, stood at $73 billion, he added. Among the promising features of the Indian economy is the infrastructure story. "The Golden Quadrilateral, which connects major cities, will be ready by December 2004, and the North-South-East-West corridor by December 2007. The direct beneficiaries of this would be commercial vehicles and the cement industry," Jayaram said. He said consumer credit was rising. "This has been made possible due to the low interest rates, signs of declining debt aversion and the organised players getting active in retail financing. The direct beneficiaries of this are the two-wheeler industry and retail banking." Jayaram said positive structural reforms have been undertaken. "Power sector reforms are under way, and many states are also undertaking power and revenue reforms. "The downside is there may be distorted development with some states advancing and others lagging behind," he said. Jayaram said the pharmaceutical industry has produced global leaders. "On the technology front too, the 'global share story' has gained credibility. The Indian equities have generated $117 billion market capitalisation and the top 100 companies listed on the Bombay Stock Exchange account for $84 billion capitalisation. "Due to all these factors, the Indian market could take off in the next couple of years," Jayaram concluded.
Source: IANS