macro indicators of indian economy

8/8/2019 Macro Indicators of Indian Economy

1/19

Key Indicators of Indian

Economy.

1)

High Auto sales nos.2) High car sales nos.

3) High commercial vehicles nos

4) Consumption pattern

5) Demographic

6) GDP Growth


2/19

Impact of Increase in auto sales number

Auto sales has ended on a very good note for Indias Automobile industry, whichregistered a increase of sales since Jan 2010 onwards , as compared to thesales in 2009.

Indian automobile market has been showing an upward curve .

Increase in auto sales number reflects:

a) Masses have higher Disposable income.

b) Higher Consumption , impact On Overall Economic Growth.

c) Pay Scale Revision Has led to higher Disposable Income with the Masses.

d) NREGA Schemes , introduced by government has led to overall Ruralgrowth as people have employment , they have money to spend on FMCGproducts .

Conclusion

Over the longer term, comparatively low penetration levels, a healthy economicenvironment, and favorable demographics, supported by higher per-capita incomelevels, are likely to help the auto companies in sustaining their top-line growth.


3/19

Two Wheelers

% annual growth in sales

'08-09 '09-10 '10-11*

*Apr-Jul

2.6

26.028.3


4/19

High Car Sales Number

India is a country on the move. In the yearsup to 2015, we expect to see Indianautomobile production increasing by eight

percent per year on average . Month on Month Increase in numbers reflects

growing demand

Impact High Disposable Income within all segments.

Demand for consumer Durables .


5/19

Passenger vehicles

% annual growth in sales

'08-09 '09-10 '10-11*

0.2

25.633.8

*Apr-Jul


6/19

Impact ofHigh commercial vehicle sales nos.

Rise in the sales of commercial automobiles sector's sales arerising since oct 2009 . It is a positive sign for the overalleconomic growth.

CV sales is intrinsically linked with activities in the infrastructuresector& manufacturing sector, which is a key driver of the

economy.

Rise In CV sales also reflects growth in manufacturing

sector , which is also seen by IIP numbers Manufacturing sector rose by 18.5%

Indicates High Demand for Products across the country ,reflecting momentum in the economy.


7/19


8/19

RISING SALARIES

Salaries of PSU

employees

14.70%26.00%

31.20%

2006-072007-08

2008-09

% annual increase in Per capita emoluments

Source-Economic Survey


9/19

Consumption Pattern

The consumption patterns in India and what people wish to spend on isgetting changed, with the line dividing the Indian urban and ruralconsumer.

The aspirations of Indian consumer are becoming homogeneous .

Previously urban segment which comprises of 30% used to consume 2units and non urban segment which comprises of 70% used toconsume 1 unit . We can observe a consumption pattern shift nonurban consumers are consuming products & services on the pattern ofurban consumer which is 2 units .this is resulting into high demand forauto sales , FMCG products , consumer durables , consumer

discretionary.

Indian consumer has more money , more choice & different attitude.


10/19

Demographic changes

Pattern would change by 2015.

Working Population 18-35 years will increase significantly.

More than 60% of the population would be younger workingpopulation. this trend which is continuous trend for coming

decade will help economy towards high consumption , products& services.

Younger population has more aspirations .

Demand for consumer durables , luxury items etc will rise.

According to NCAER study by 2015 , 15 Cr young people will be

in job market who are in age group of around 18 years now. Massive increase in consumption over longer period with million

of youths getting in employment and earning cycle.

I.T, manufacturing and financial services will provide maximumjobs creations.


11/19

LCD TVs sales in lakhs

2008 2009 2010

7

*Projected

15

30


12/19

Air Conditioner sales

(Millions)

2008 2009 2010

2.5

*Projected

2.25

3


13/19


14/19

Rural Jobs

Expenditure on MNREGA

'10-11*

'09-10

'08-09

'07-08

Figures in Rs Crores*Budget

estimates

15,857

27,250

37,938

40,100


15/19

Rural Migration (Educated)

Latest study of NCAER is indicating that incoming decade rural educated youths willmove to Towns for services and businesses.

This will result into demand for housing intowns and further commerce opportunities.

Small towns will expand and local economywill boom.

More budget housing demand and demandfor financial services. B-Towns will maximumgainers.


16/19

Rural Growth

BENEFITS OF GROWTH

Higher disposable income and more stability ofearnings , leading to

Increased sales of goods (durables and housing)and services (Telecom, Education and Healthcare )in rural areas.

Up gradation of lifestyle which would be reflected inthe emergence of rural malls. Media andEntertainment opportunities would also open up inthe rural areas.

A higher rural savings rate would also provideopportunities for the financial sector.


17/19

AIG India Equity Fund

The Scheme would follow an actively managed approach allowing it the

flexibility to pursue opportunities across the entire market capitalization

spectrum.

It will have no biases towards any particular style, sector or market cap.

It will continuously look across the value and growth spectrum to keep a

balance in the portfolio so as to maintain its performance over various market

cycles.


18/19

AIG Infrastructure and Economic Reform

Fund Focus on key infrastructure growth areas and identify visible long term growth

stories at reasonable valuations

Theme of the fund: to uncover companies that will feed into the infrastructure boom,

including but not necessarily only infrastructure companies

Be adequately diversified across a number of sectors within infrastructure segmentsto reduce concentration and risk to any one or a group of related sectors

Long term view with dynamic re-allocation depending on price targets andapproaching new opportunities as time goes by


19/19

WHYAIG WORLD GOLD FUND

Six primary reasons why investors own GOLD

As a hedge against inflation

As a hedge against a declining dollar

As a heaven against declining dollar As a safe haven in times of geopolitical and financial market instability

As a commodity, based on golds supply and demand fundamentals

As a store of value

As a portfolio diversifier; gold can act as portfolio insurance

macro indicators of indian economy

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