“India is growing at a fast pace, largely driven by efficiency gains in doing business, tax collections, infrastructure and rural economy,” it added. There are only 28 episodes ever when countries grew at over 6 per cent for 8 years or longer, Edelweiss Securities said in a research note, adding India is entering this rare club.
Moreover, there has been a marked improvement in global competitiveness among major emerging markets and 90 per cent of FDI is now coming through the automatic route, replacing hot money, it added.
Regarding digital India, it said that apart from gains from extinguished liability, the realeffect of demonetisation has been a repair of banks’ balance sheets and an increase in digital transactions.An efficient rural India means higher rural income, which in turn would lead to large increase in discretionary spend hence stronger growth in India.
“The number of stocks hitting 52-week highs are rising steadily and the total market cap of all NSE listed stocks (above 200 cr MCAP) is also at a new all-time high; suggesting strong momentum in broader market,” it said.