Even if GST fail to go through, investors will not leave India: Gopal Agrawal, CIO, Mirae Asset Management

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Even if GST does fail to go through, investors will not leave India, as the economy is on a recovery path. Earnings growth is likely to pick up from the first quarter of 2017 and Nifty earnings could grow by 15%, says Gopal Agrawal, Chief Investment Officer, Mirae Asset Management in a interview with Prashant Mahesh.

There are worries that GST which has been touted as one of the biggest reforms is unlikely to go through. How could this impact the markets and the economy?

GST is a very big reform in the category of Ease of Doing Business. The stock markets are pricing in the fact that it may not go through. Hence even in the worst case scenario of it not going through, investors will not exit in a hurry, as the Indian economy is on a recovery path and major macro worries are behind us. Current account deficit is no longer a worry, inflation is under control, fiscal consolidation is in the right direction and crude oil prices have moved down sharply.

GST is a very big reform in the category of Ease of Doing Business. The stock markets are pricing in the fact that it may not go through. Hence even in the worst case scenario of it not going through, investors will not exit in a hurry, as the Indian economy is on a recovery path and major macro worries are behind us. Current account deficit is no longer a worry, inflation is under control, fiscal consolidation is in the right direction and crude oil prices have moved down sharply.

Read more : http://economictimes.indiatimes.com/opinion/interviews/even-if-gst-fail-to-go-through-investors-will-not-leave-india-gopal-agrawal-cio-mirae-asset-management/articleshow/50130072.cms?utm_source=TOInewHP_TILwidget&utm_medium=ABtest&utm_campaign=TOInewHP

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