Ever since the pandemic hit us in 2020, the world order has not been the same. The global economic dynamics have just not been the same. Global GDP growth has slowed down largely due to the turmoil witnessed in the developed part of the world. Global GDP growth averaged 3% in 2015-2019 and has slowed down to 2.1% since 2020. US GDP growth has followed the same pattern, averaging 2.4% in 2015-2019 and 1.8% since 2020. Supply chain disruptions, ballooning inflation, tightening by central banks, and currency fluctuations are just some of the issues that continue to impede growth.What is surprising is that China, which traditionally has been the driver of the global growth engine, too has not been immune to the pressure with GDP growth slowing down from 6.7% to 4.5% in the same above mentioned period.  India, on the other hand, has not just bucked the trend, but has also emerged as one of the strongest and fastest-growing countries in the world. FY24 is expected to be the third consecutive year of 6%+ GDP growth. There are two questions that emerge at this point in time: a) what’s driving this sustainable strength of the economy & how far can things go? And b) what should equity investors be doing in this scenario?First things first, there are a number of things that are working for us that are driving this strong growth (and why we believe that this would continue). RBI has done a fantastic job of managing inflation, currency, forex reserves, improving the banking system asset quality, and balancing the growth paradigm. Over the last couple of years, RBI has emerged as one of the best and most proactive central banks in the world. Additionally, the Government’s focus on maintaining growth seems to be completely uncompromisable. The way the government has been focused on increasing capital expenditure, year after year, seems to be a sea change from the yester years. Moreover, the annual union budget seems to be an exercise in under-promise and over-delivery.Corporate India’s behavior in the last few years has been absolutely unlike in the past. In the post-pandemic world, corporates have worked hard to conserve cash, deleverage and defer capital expenditure, thus making the balance sheet stronger and more immune to the rate hike cycle.Lastly, consumption continues to remain strong. Auto loans and housing loans remain one of the fastest-growth portfolios for banks. The impact of increasing GDP per capita seems to be fairly strong on discretionary consumption habits.Consequently, we have been and will remain one of the fastest-growing economies in the world and should touch the US$5 trillion mark in the days to come and eventually reach the exclusive US$10 trillion mark by the mid-2030s. As the economy does well, so should the equity markets. Remember, for a market with a strong RoE profile and sustainable double-digit growth, 19.5x PE multiple is not expensive. So, shed the inhibition and doubt. Invest now! https://www.financialexpress.com/market/cafeinvest/india-emerges-as-strongest-fastest-growing-economy-could-hit-10-trn-economy-in-mid-2030s/3216998/ (ICE MUMBAI)

Fonte notizia: The Economic Times