CLSA India's Gupta on Indian Inflation

The transcript discusses the Reserve Bank of India's (RBI) monetary policy, including maintaining an accommodative stance while withdrawing surplus liquidity. It predicts a rate hike in the next fiscal year. The impact of low interest rates and oil prices on investment and demand is analyzed, along with the rural economy's recovery post-COVID. Government spending's role in economic growth is examined, with a focus on future growth drivers like low lending rates. Concerns about high valuations in Indian equity markets are also addressed.

What is the expected action of the RBI regarding interest rates in the next fiscal year?

• Decrease rates by 100 basis points

• Maintain current rates

• Eliminate all surplus liquidity

• Increase rates by 100 basis points

According to the survey mentioned, what is the primary factor influencing loan decisions?

• Government policies

• Inflation rates

• Economic growth

• Lending rates

What is one of the challenges affecting rural demand despite a good harvest?

• Urban migration

• Increased government spending

• High oil prices

• Low lending rates

What is expected to drive economic growth in 2022?

• High government spending

• Low lending rates

• Increased exports

• Rising inflation

What is the current trend in government spending as economic activity picks up?

• Slowing down

• Remaining constant

• Decreasing sharply

• Increasing rapidly

What is a potential risk in the Indian equity market according to the discussion?

• Low foreign exchange reserves

• High valuations

• Decreasing interest rates

• Stable rupee

How is India's growth expected to compare with other countries?

• Unpredictable due to market volatility

• Higher than almost every other country

• Similar to emerging markets

• Lower than most countries