Nilesh Shah, Managing Director of Kotak AMC, recently shared his views on the factors that will aid India’s growth story in the coming years. He believes that India has little room to go down and the only way is up. Furthermore, Indians are jugaadu people, meaning they have always evolved and adapted to changing circumstances. Shah believes that Indian culture and technology are key reasons behind this ability to adapt. However, he notes that the adoption and evolution necessary for success in a rapidly changing world are not visible in financial savings.
Shah emphasizes the need for Indians to invest in equity mutual funds to benefit from India’s tremendous growth story. He notes that while people are investing in underperforming assets like gold and real estate or spending money on gaming revenues, there is more money lying in savings accounts than in equity mutual funds.
Shah emphasizes focusing on management and governance in sectors and companies for future success. He believes that good managers with a vision who can execute that vision fairly and honestly are crucial for creating value. Industries and economic cycles may go up and down, but with a good promoter, investors can always make money.
Shah believes that India’s journey towards growth is reflected in three things: the top ten fastest-growing cities in the world being in India, Maharashtra’s GDP equivalent to India’s GDP in 2005, and the dominance of Indian pharma and IT companies in the global market. He believes that this trend will continue in the future, with India’s states becoming as big as today’s India.
In conclusion, Nilesh Shah remains optimistic about the growth prospects of India, citing Indians’ ability to evolve and adapt, good management and governance, and the growth of cities, states, and corporates as factors that will help India’s growth story in the coming years.
