Current Stock Market Euphoria likely to sustain with strong government in place: PHD Chamber

It also summarized that the current stock market euphoria will continue provided the new government takes such policy measures as were initiated

May 14, 2014 8:55 IST | India Infoline News Service
Roundtable on Direction of Economy, Businesses and Markets organized by PHD Chamber of Commerce and Industry here concluded with a happy note that India could inch up to over 7% growth rate in next few years provided it is able to scale up its manufacturing with imparting skills to its labor force
It also summarized that the current stock market euphoria will continue provided the new government takes such policy measures as were initiated, way back in 1991, which transformed Indian economy and deepened its global engagements to a significant extent over the years.
Those that aired the aforesaid sentiments in the Roundtable, comprised leading economists and stock market experts like former vice chancellor of JNU Prof BB Bhattacharya, Managing Director, Dalton Capital Advisers (India) U R Bhat, Professor, Emeritus, Centre for Policy Research Dr. Charan Wadhva, President PHD Chamber Sharad Jaipuria, its Vice President Mahesh Gupta, economic Affairs Committee Chairman of PHD Chamber Gopal S Jiwarjka and Former Deputy Editor The Hindu Ashok Das Gupta.
Prof Bhattacharya categorically stated that so long as state governments ignore technical education in their respective domain, manufacturing would remain depressed and subdued. Thus these need to propagate technical education to create skills to boost manufacturing just as the Modi government did in Gujarat in the last couple of years, pointed out Prof Bhattacharya adding that on account of its focus on technical education, Gujarat is the only State in India in which the share of industry to its gross domestic product is more than 50%.
Whereas the share of services in all states including the central government in their state domestic product was more than 60 per cent because these did not pay any attention to accelerate technical education in their respective domain which let them down the share of industry in their gross domestic product he concluded.
Bhat was of the review that current stock market bullishness would sustain and its sentiments further pick up provided the new government takes up pro active measures, reorient its policies to prune subsidies and populist schemes and divest its stake from public sector undertakings in an aggressive manner and allow government oil companies to adjust prices of petroleum products on import parity.
According to him stock market will also peak up in case India is able to increase its savings rates substantially and spur up investments both domestic and overseas by reformist approach which could be possible with strong government in place.
Saurabh Sanyal, Executive Director, PHD Chamber of Commerce and Industry moderated the roundtable hoping that the new government will attach top priority to implementing its intent as revealed during the electioneering for constitution of 16th Lok Sabha.

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