Jun 22, 2012, 06.30 PM IST

For investments, India still a hot destination: JP Morgan

There is a clear trend of a decline in energy and commodity prices worldwide.

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Adrian Monwat, Chief Asian and Emerging Market Strategist , JP Morgan

There is a clear trend of a decline in energy and commodity prices worldwide. The countries to most benefit from this trend are Turkey and India due to their high current account deficits, relatively large oil imports and high inflation says Adrian Monwat of JP Morgan to CNBC-TV18 in an interview.

Our forecast for the end of this year is that we believe that the Indian economy will benefit from decline in energy commodity prices, interest cuts and weaker rupee which makes Indian manufacturing and software services more competitive.

We are able to understand what is wrong with the Indian economy. Our point is not to focus on why the stock market fell 40% in last one year but to see what the stock market will do in next 12 months.

If the monetary policy is accommodative, trade policy moves in right direction and pushing inflation lower than these will act as a positive factor for India growth.

The current level of growth at 5.3% is the lowest we had since 2003. However, choices are limited at the moment when we see growth in global economy. Currently, there is 1.1% growth in the developed world, US may see 2.1% growth, recession in Europe and growing Brazil growth at 2%. Compared to global growth numbers we have a relative easy call on India.

Also watch the accompanying video.

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