Growing Financial Might
A recent report from Boston Consulting Group (BCG) suggests that the financial wealth in India continued to grow amid the raging pandemic.
The report says that between 2015 and 2020, financial wealth grew by 11% per annum to $3.4 trillion in the country.
Seeing pandemic as an opportunity, it further states that the growth shall remain impressive even in coming years. And India's financial wealth is expected to grow by 10% to $5.5 trillion by 2025.
If the findings of this report are any indication to go by, India is firmly on the path of achieving financial freedom for its citizens. And, it is a very encouraging time to stay put with your investments.
However, a large part of India's population still lacks financial literacy. And they do not take an active interest in growing their investments. Hence, inequality and disparity continue to grow. And, only a minuscule percentage of India's population continues to control the wealth.RBI bans DHFL from taking deposits under Pirmal management
What Will The RBI Do?
The Consumer Price Index (CPI) data of May has increased the headache for RBI. India's retail inflation spiked up to 6.30%, breaking the target band of 4% inflation or - 2%, set by the RBI.
The inflation remained within the comfort zone throughout the second COVID-19 wave, but now it has moved beyond it. With that, the MPC committee is surely in a spot of bother. The inflation has spiked up at a time when the RBI has limited tools available at its disposal to control the beast.
The RBI indeed has very little choice apart from continuing to support the growth even at the expense of rising inflation. As far as inflation is concerned, with the positive start of the Kharif season, food prices are likely to come down soon. With that, it can be expected that inflation will also ease down to its normal levels in a couple of months.Teji Mandi Explains: Equity mutual funds scripts a comeback as market stays in momentum
Getting Back On Track
With most of the states easing the restrictions, the passenger vehicle market is returning to normalcy.
Activities are picking up at the dealer level. Out of around 25,000 auto retail outlets in India, 80% of them have reopened. They are also receiving good responses from customers as inquiry levels have gone up. Supply is also expected to start improving as manufacturers have resumed production.
The positive trend has been confirmed by Maruti Suzuki. Shashank Srivastava, senior executive director of the company, noted that the retail bookings have gone up. The activity levels are also high at its showrooms, and even cancellation rates have dropped to lower than average.
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