In another 10 years, India would save $5-6 trillion every year, give birth to Morgan Stanley, Merrill Lynch and JPMorgans: Raamdeo Agrawal
Raamdeo Agrawal, Chairman, Motilal Oswal, says “in the last 25 years, total savings in the Indian economy was $10-12 trillion. But in the next 25 years, it is going to be $100 to $150 trillion and it is going to hit us every day. It is hitting us every day. This is the journey of India. By 10th or 12th year, India would be accumulating almost $5-6 trillion of savings per year. We are going to give birth to Morgan Stanley, Merrill Lynch, a big JPMorgan or big asset management company out of India with a serious scale.”
There are a lot of themes in this market, PSUs, defence, railways but one theme which you have really understood over the years is autos and auto seems to be in a great patch now. Two-wheelers are doing well. Escorts is also looking well. Maruti is doing well, Tata Motors is doing well. Do you see this kind of a comeback in the autos, especially at the discretionary end of the market, to last for the next two-three years?
Raamdeo Agrawal: So long as you have the rallies going on in the capital market, which is another source of what you call wealth creation for the people at large, they are going to use their market cap power or financial wealth that they have created in their portfolios for buying discretionary stuff, whether it is high-end housing, high-end cars, high-end fashion, travel, all luxurious things.
