India’s Future Value formula is being used to forecast the future of India’s stock markets.
Here are some key points to note.
-India has been experiencing a global financial crisis.
The country has a huge debt load, and the economy is expected to shrink for the third year in a row.
-The government is set to introduce a new tax on foreign ownership of real estate.
The tax, which will be implemented from March 1, will reduce the number of foreign investors in the country from around 5% to 3% of the country’s gross domestic product (GDP).
-India’s banks are facing financial difficulties.
This is largely due to the impact of demonetisation, which has affected banks’ balance sheets.
In March, the central bank said that the country is “well past the critical threshold” to start the process of writing off loans.
It is expected that the bank debt burden will rise.
-Inflation is expected at 7.2% in the next 12 months.
India’s economy is forecast to grow at 6.7% in 2019, according to the International Monetary Fund.
The government has also promised to cut its inflation rate to below 2%.
-India is facing an energy crisis.
It imports 80% of its electricity, but imports nearly 60% of total fossil fuel production.
According to the National Institute of Renewable Energy, the country could be importing 40% more fossil fuels than it is producing in 2020.
-Global economic growth will slow to 2.4% in 2020 from 3.4%.
India is forecasted to grow to 2% in 2021.