Nilesh shah- MD - Kotak AMC on the Indian economy:
I will take liberty to point out certain factors. a) The movie Baaghi 2 had a bigger opening collection than Bahubali 2 which was a far grander movie. It shows that urban consumption is growing at a reasonable pace. Sonali Contractor sold 100,000 tractors last year. Mahindra & Mahindra, Escorts are also showing all-time high levels of tractor sales. Clearly, that shows that rural economy is doing well.
Maruti Baleno has a four months’ waiting period. If consumers do not have money, then how come they are waiting for four months to get the car? Tata Motors’ commercial vehicle production is at an all-time high record level. Generally commercial vehicles are pulse of the market, pulse of the economy. If commercial vehicle sales are happening, certainly economy is rebounding.
Cement volume are showing double digit growth. The cement numbers for this quarter has come ahead of expectation. If we see a variety of other FMCG companies like Dabur, Lever and ITC, their commentary is also positive in terms of rural FMCG growth.
Put all these numbers together and you realise that the economy seems to have now rebounded, the momentum is picking up, it is reflected in last four months of IIP numbers which was above 7%. It is reflected in GST collections which have crossed Rs 1 lakh crore for the first time.
I will take liberty to point out certain factors. a) The movie Baaghi 2 had a bigger opening collection than Bahubali 2 which was a far grander movie. It shows that urban consumption is growing at a reasonable pace. Sonali Contractor sold 100,000 tractors last year. Mahindra & Mahindra, Escorts are also showing all-time high levels of tractor sales. Clearly, that shows that rural economy is doing well.
Maruti Baleno has a four months’ waiting period. If consumers do not have money, then how come they are waiting for four months to get the car? Tata Motors’ commercial vehicle production is at an all-time high record level. Generally commercial vehicles are pulse of the market, pulse of the economy. If commercial vehicle sales are happening, certainly economy is rebounding.
Cement volume are showing double digit growth. The cement numbers for this quarter has come ahead of expectation. If we see a variety of other FMCG companies like Dabur, Lever and ITC, their commentary is also positive in terms of rural FMCG growth.
Put all these numbers together and you realise that the economy seems to have now rebounded, the momentum is picking up, it is reflected in last four months of IIP numbers which was above 7%. It is reflected in GST collections which have crossed Rs 1 lakh crore for the first time.
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