
India a level-headed country, next few decades belong to India: Abhishek Banerjee
In an exclusive episode of ETMarkets World View, Abhishek Banerjee ofLotusDew Wealth opens up about Indian sectors with potential, the RBI governor's stance on GDP growth, and much more.
Recently, India recorded a current account surplus of $5.7 billion. What does it say? India was also included in the JPMorgan bond index recently. What key changes should we be aware of?
Abhishek Banerjee: India's current account surplus is noteworthy because historically, India has been a current account deficit country, importing more than exporting. This deficit typically keeps the currency weaker to make exports more attractive and imports more expensive, which supports export-driven sectors like pharma and IT services.
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Offering CollegeCourseWebsiteIIM LucknowChief Operations Officer ProgrammeVisitIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowChief Executive Officer ProgrammeVisitHowever, the current surplus indicates a shift where India is producing more of what the world needs and importing less. Typically, a surplus should strengthen the INR. While a stronger INR might seem positive, it could hurt export competitiveness, as a weaker INR is generally better for export-driven growth.
With India's inclusion in the JPMorgan Global Bond Index, substantial foreign investment is expected. This inclusion, with a 10% allocation, could bring around $1.150 billion into India. The government aims to maintain a stable rupee to attract these foreign