India will be re-dated, not de-rated: IDFC Securities

Our Bureau Mumbai | Updated on July 09, 2012 Published on July 09, 2012

India will get ‘re-rated’ and not ‘de-rated’ as people are moving up the socio-economic ladder, said Mr Nikhil Vora, Managing Director, IDFC Institutional Equities Research.

India’s per capita income, which officially stands at Rs 53,000, could be easily higher by 30 per cent, according to a report released by IDFC.

The income levels, especially of the households, have been artificially suppressed by 30-35 per cent, he added.

Mr Vora said the delayed monsoon fears have been overblown and the slowdown in India is more cyclical unlike in the US where it is more structural. “The slowdown in India is on the investment side and not on the consumption side,” Mr Vora added.

Pointing out that pessimism makes for good headlines, Mr Vora said for rural India, the prosperity has come from investments made in gold and agriculture land. Prices of both these investments are at a lifetime high and ‘most importantly cashable’.

The report ‘Tour de India, which covers economic activity — roadside restaurants, vendors, retail shops, auto dealers, watchmen among others — in seven States, shows people earning a daily income ranging from Rs 150 to more than Rs 10,000.

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Published on July 09, 2012
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