Amidst Ukraine – Russia War, Indian Economy Well Placed

Indian Economy: The year 2022 closed on a remarkable note for the Mutual Fund industry. The average assets under management (AAUM) for the domestic mutual fund (MF) industry grew 19.5 percent in March 2022 to Rs 38.4 trillion, compared to the previous quarter.

There had a steep surge in equity markets and more than 3 crore mutual fund folios were added in the financial year. Comparably, we can say it was a significant growth in the number of folios from the year 2020-to 21 when only 81 lakh new folios were added. Experts are not losing hope and believe the trend will continue in 2022-23 as well.

We can credit the increasing awareness among individuals about mutual funds to be one of the reasons for the surge. Also, digitization has played a significant role because of which investors now have cases of transactions. The sharp rise in equity markets also led investors to invest worry-free.

Indian Economy

Indian Economy Well Placed

Indian economy is doing well but we know the world is currently reeling under the pressure of
the war between Ukraine and Russia. The conflict has put a potential economic impact on the
nations, including India. The crude oil price has shot above US$100 per barrel, and wheat and edible oil prices have also multiplied. The capital outflow and rising import costs will only impact the budget, at a time when the country was just beginning to come out of the impact of Covid.

Even then, due to the strong underlying economic fundamentals, India is far better placed. it has managed to sail through the external shocks, which are only short-term and the impact in the long-term is expected to marginal. The geopolitical conflict will only create India as an alternative for countries looking for better investment destinations. Amid the war, PM Modi’s visit to Europe is to strengthen multi-faceted partnerships with key European countries for future economic cooperation and to build better ties with the sub-continent.

The gross goods and services tax collection of India in April has hit a fresh high of Rs. 1,67.540 crore. Revenues from goods import rose 30% YOY and 17% from domestic transactions and services import. On the back of these factors, IMF expects India to grow at 8.2% during FY2021-22. It looks like the baton for the fastest-growing emerging country will passed on from China to India in the coming years.

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Steven Ross

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I started building websites for small businesses. I started getting more creative, building websites for big brands. I built a portfolio, and after a year or so, landed a position as a full stack web developer at a Fortune 500 company.

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