The better than expected second quarter GDP growth figures and the improvements seen in several economic indicators are giving analysts reason to be cautiously optimistic about the country’s future growth trajectory.
In line with the new Defence Acquisition Policy, which allows the lease of foreign weapons platforms, the Indian Navy has leased two unmanned aircraft to keep a close eye over the Indian Ocean and on the China border even as it proposes to buy 18 more such drones.
The next US administration may make a few noises about Kashmir and human rights but the convergence of geo-strategic interests between India and the US and strong bipartisan support for a closer diplomatic engagement will ensure that the relationship continues to gather strength.
The Indian Prime Minister made a strong pitch to 20 of the world’s leading fund and asset managers to invest in India’s infrastructure and other sectors. Such investments could prove critical for the success of India’s PSU divestment programme and infrastructure building ambitions.
Indian auto, consumer durables, FMCG, steel and services sector companies are feeling cautiously optimistic about the future once again. They are stepping up fresh investments, handing out pay hikes and paying the government higher taxes in the form of GST.
Leading Indian steel companies have raised prices for the second time in November on the back of recoveries in several key consuming sectors. This is giving rise to optimism that the country is on the cusp of a quick and broad-based growth revival.
The Indian Prime Minister has painstakingly built a technology-enabled link to every citizen. This is facilitating the delivery of rations, money, subsidies and even houses, toilets, cooking gas and piped water to every Indian home. And this is delivering a massive electoral bonanza to Modi and his party.
The recently launched production-linked incentive scheme for smartphone makers has already started paying rich dividends. Extending this to laptops, tablets could open up a $100-billion opportunity for India, reduce the trade gap with China and generate employment for millions.
India and Europe are working on the blueprint of a new foreign policy structure. The Modi government seems to have decided to invest further in the relationship with the continent, and more specifically, particular countries within it.