By Ankit Shah – Vivek Kaul’s Inner Circle (India) –
We believe in India’s growth story in the long-term, although the 7.1% GDP forecast for full year growth in the current fiscal year ending March 2017 is likely to be highly optimistic.
Our positive outlook stems from our take on the country’s growth prospects.
Demographically speaking, India is in a sweet spot which bodes well for its growth rate.
The working age population is set to rise steeply and will only peak in 2050, while its dependency ratio (young plus elderly to working age) is set to decline all the way through 2040, meaning the Indian household savings rate is set to rise and with it the loanable funds pool available for investment.