India’s economy is likely to pick up pace in the coming year, backed by sound fundamentals and renewed interest from overseas investors, according to Ashishkumar Chauhan, Managing Director and CEO of the National Stock Exchange (NSE).
Chauhan made the remarks at the NSE during Muhurat trading, the special one-hour session held on Deepawali.
Strong growth and steady finances
Chauhan said India remains the fastest-growing large economy in the world. The country recorded GDP expansion of 7.5 per cent year on year, and he expects growth to accelerate further in the coming year.
He credited the government with handling fiscal pressures well despite a difficult global environment and swings in crude oil prices. Oil has long been a worry for India, he noted, because the country imports nearly 85 per cent of the oil it consumes.
Even so, he said the government is managing its fiscal deficit comfortably, helped by strong tax collections. That gives the state room to spend heavily on infrastructure and job creation, which in turn lifts investor confidence, he added.
Domestic savings provide a cushion
Chauhan pointed to the depth of domestic money as a key strength. He said household financial savings in India have grown substantially and now amount to nearly USD 1.4 trillion a year, which makes the country one of the largest pools of savings in the world.
According to him, this domestic capital has played an important role in supporting the stock market and keeping investment flowing, even when global conditions have been uncertain.
Foreign investors show renewed interest
Chauhan also noted a change in mood among overseas investors ahead of the new Samvat year, the Hindu calendar year that begins with Deepawali. Foreign institutional investors (FIIs) have started looking at Indian markets with fresh interest again, a development he called a very good sign for the year ahead.
Technology and user experience
On the exchange’s own progress, Chauhan said the NSE has strengthened its technology over the past year and now achieves response times at the nanosecond level. He said this has made the exchange the fastest in the world.
He added that the NSE is using artificial intelligence to offer retail participants richer information, better analytics and sharper insights. The exchange is also rolling out upgrades to its user experience, including new features on its website and mobile app aimed at individual investors.
Reaching more investors
On investor protection and financial literacy, Chauhan said the NSE’s physical seminars currently reach between 10 and 15 lakh investors. The exchange is now widening its digital reach to include more people.
It is using social media, traditional broadcast channels and direct-connect programmes to spread awareness and teach new market participants about the risks involved in trading.
A call for patience
Chauhan urged investors to focus on building wealth over the long term rather than chasing quick gains. He warned against acting on short-term tips and cautioned against intraday speculation or derivatives trading without a clear understanding of how to manage risk.
“Believe in long-term investing rather than short-term tips,” he said. “Stay invested for the long run.”