‘Right time to invest in India’

Manama : An Indian financial expert said that this was the best time for Bahrain investors to invest in India.

Financial expert and portfolio manager P R Dileep is on a Bahrain visit and was speaking at a seminar on investment opportunities in India.

He has reportedly already received positive responses from prospective investors here.

"I would like to encourage people in Bahrain to invest in India because India is one of the fastest growing economies in the world and is not expected to face a recession at least for the next 20 years,” he said.

“Also when you consider that the economies of many countries are slowing down, India is a very attractive option.

“Currently investors have the best possible scenario in India. We have an efficient financial market, a stable currency and a fast growing economy."

The Indian economy is set to reap benefits from recent reforms undertaken by the government, he said.

The demonetisation of INR500 and INR1,000 banknotes was a policy enacted by the Indian Government on November 8, ceasing their usage as legal tender in India from the next day.

It was aimed to help propel the Indian economy to new heights and build India as a 'cashless economy'.

It was claimed as an effort to stop counterfeiting of the current banknotes allegedly used for funding terrorism, as well as a crack down on black money in the country.

The move was also described as an effort to reduce corruption, the use of drugs, and smuggling.

"India's GDP is growing at a rate of around six per cent and this is the official figure,’ explained Mr Dileep, who is currently on a Bahrain visit.

“However there is an underground (secretive) sector which has not been accounted for, and growing at a similar rate.

“This unofficial economy is as big as the official economy, and so what India is doing now is bringing out this unrecorded sector so that the economy can reach its true potential. 

“The demonetization reform will help us do just that. More and more people will be forced to pay taxes and become more accountable. “This will enhance the overall GDP growth of the country."  

Mr Dileep said that although India was coping well to the changes, some industries would need more bedding in order to adjust.

"There are some sectors that are more affected than others, such as real estate or automobile.

“How they recover will depend on how quickly they adapt.

“It is true that it can be difficult in the initial stages.

“But once we have adapted there will be better opportunities in the long run.

“I think a lot will be sorted out by the end of this calendar year and by the end of March 2017 we will have completely adapted." 

The idea of a cashless economy that the Indian government aspires to achieve was exciting, he elucidated.

"We (India) are moving towards digital payment system and this is a real possibility now.

“A cashless economy will be better equipped to deal with the menace of black money.

“Historically, India has been very quick at adapting to change.

“Any change made at a national level reaches even the remotest village very quickly. We already have the required infrastructure, it is just a matter of getting acquainted."