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The year 2018 was interesting for Indian economic growth as a series of decisions implemented in 2017-18 started to show results and fructify. The signs of growth and return on investments were quite evident from the third quarter itself.
As the year gone by was an action packed one, 2019 is now going to be all about learnings and the way forward.
In a bid to derive learnings from 2018 and chart out a map for 2019, CNBC TV18 and KPMG, which is celebrating 25 years in India, held a panel discussion on titled - ‘Deals Round-up 2018 and the Road Ahead 2019’ where experts from diverse sectors shared dissected, discussed and shared insights and opinions on various issues surrounding the deals space.
Panellists Vikram Hosangady, Partner and Head, Advisory Practice, KPMG in India; Manish Aggarwal, Partner, Special Situations Group, KPMG in India; VS Parthasarathy, Group CFO & Group CIO, Mahindra Group; Ramesh Swaminathan, Head-Corporate Centre, L&T; and Shrinivas Chebbi, President, Buildings, Schneider Electric-India sat down and discussed what lies ahead for India.
“2018 was a remarkable year if you look at the deals that have been completed, whether it is private equity, venture capital. I think the interest continues to be very high. In fact the last quarter, in spite of all the turmoil, still saw some many large deal closures. We are very optimistic and India is very much on the corporate radar of global companies,” said Hosangady.
The venture capitalists are bullish about India and are back with a bang. Meanwhile, the auto sector also saw some ups and downs last year and is looking forward to a big bang.
Parthasarthy, “We are going in the New Year with lot of good things. There are some tailwinds as well such as commodity prices, monsoon and liquidity and interest rates.”
Also, various government policies have now started to show positive results. Having said that, all experts said that fiscal deficit still remains a worry.
“There are four growth engines for the Indian economy. The first is private consumption which has been going up. Second part is private investment which has also grown in last few quarters, third is government expenditure that is significantly growing, the fourth is exports and that has also done well. There are tailwinds also in 2019 mainly managing fiscal deficit, and also the pharma sector. It has been a turbulent time for pharma sector,” Swaminathan said.
Meanwhile, as we move ahead, India continues to be a bright spot among emerging economies and thanks to robust policies and decisions, it remains one of the top economies.
The country continues to be one of the shining stars in the global economy and an engine which everyone is depending upon. In fact, if you look at FDIs which have been flowing in that proves that India is going to do very well. We look at India as a very very important market and some of our actions have been very clear in this. One thing which we look at closely is infrastructure which is of prime importance to us as well as other industries, said Chebbi.
Having said that, the year 2018 was good for the infrastructure sector impacting major markets. Even the highways and renewables sectors showed tremendous improvement.
Now, the focus lies on the domestic investments.
“While the policy intent has been very good, they really spend a good amount of money on the public side to really bring comfort to investors so as to start coming in. The domestic private investments has not picked up as yet. It’s more of foreign capital that’s coming in but that has been limited to a few sectors. It depends on how the government really pushes remaining sectors on that side,” said Aggarwal.
As per a KPMG report, India growth story does not hesitate to adopt aggressive measures to bring about the necessary structural changes in the economy. KPMG, which is celebrating 25 years of operations in India this year, stated that India is taking radical steps towards a giant leap into the future.
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