24 March, New Delhi
One of the largest global asset management organisations, Morgan Stanley Investment Management said that there is no boom in the Indian Economy. The true boom that we saw in India was between 2003 and 2007 which was last decade.
In an interview with CNN-News18 which will be telecast on Saturday night, Ruchir Sharma, Chief Global Strategist of Morgan Stanley Investment Management said, “That was the time when the global economy was booming and our exports were growing at 30 per cent a year. Whether it’s the consumption of your goods or cement or construction or real estate, every single thing today is lower, the magnitude is the only thing by which it differs, by how much lower, like construction, real estate are really in the dumps.”
He further said, “What we have now basically is a sort of steady incremental story. What the growth rate is, I don’t know. Ever since they changed the GDP methodology, I don’t have the idea of what the underlying growth rate is.””I feel that the impact of politics on markets and the Indian economy is way overstated. There is absolutely no relationship that I can find between stable governance in India vs stock market performance or economic performance. So, this a very common perception, but it’s wrong,” he stated.
Speaking about the recent cases of Vijay Mallya, Nirav Modi, Mehul Choksi etc. Sharma said, “I think these are symptoms of two things. One is obviously this is of crony capitalism. I think that’s the existing case. The second thing is that there is a nexus which the public sector banks, as to how easy it is to form a nexus with them that you can end up doing something like this. So I think that is the real issue as far as these problems are concerned. At this point, I am concerned about the witch hunt that is going on.”