India’s GDP GROWTH RATE CAN DOUBLE from here. Why NOBODY is talking about it?

Tuesday, July 26, 16

India’s GDP GROWTH RATE CAN DOUBLE from here. Why NOBODY is talking about it?

Greetings from Hitesh! Have you read following of our posts. If not, I suggest you must take out time and read.

22^nd July - 2 Simplest STEPS to MASTER the MARKET, Follow and Bless me for life /

July 20, Understand the Hidden Secrets of DIWALI and you will make tons of money in your life (gift to my regular reader)./

July 18 -“All your posts had always motivated me to invest, but somehow I am unable to take action”. Why? Please help me.

July 12 -How to invest in a company by just looking at LOGO? (Must READ for SERIOUS INVESTORS).

All our readers have appreciated these posts specifically. Now let me deal with HOT topic of GDP GROWTH RATE – which NOBODY is talking about.

LIQUIDITY is the ISSUE of the DAY:-

Go to anywhere in INDIA and you would find that all are complaining about LIQUIDITY. It seems MONEY has melted into thin Air. People are crying for CASH. Many guys have lot of GOODS / PROPERTY / MATERIAL to sell – but no BUYERS are coming as there is LIQUIDITY issues in the SYSTEM. In fact, RBI is being told to reduce the RATES at faster pace so that LIQUIDITY can come into the system.

What are the FACTS?

Govt. has taken anti black money initiatives so that CASH circulation has HALTED. People are facing the HEAT due to that. Those who have CASH can’t spend, as there are limitations up to Rs.2 lakhs or Rs.5 lakhs depending on various situations.

Since CASH can’t be spent – the demand for CASH loan is also going down!! So, if somebody is having CASH he can’t spend it due to above limitations and he can’t lend it also as there are no borrowers. The end result – CASH remains out of the SYSTEM.

If we assume CASH to be 50% of the total liquidity – we have a severe problem of liquidity in the market. 

How do we see the Coming SCENARIO?

Govt. have declared black money declaration scheme till 30^th Sep.,2016. Normal guys or newly rich guys are not having money as they are running the show on their liquidity since last two years. Many small and medium businesses have debtor cycle has increased from 1 month to 3 to 9 months.

Due to this most guys are out of their CASH LIQUDITY as of now. The only LEFT-OUT group is really BIG SHOTS / POWERRUL guys. They have their own TEAM of experts to guide them in dealing with such situations.

The end RESULTS could be that the AMNESTY SCHEME may not generate the kind of response which govt. would have expected.

In above case also CASH will not return to the SYSTEM as expected.

How GDP will get influenced over a period of time?

As long as 50% of liquidity remains out of the system – our GDP growth rate will not move up fast. But as results of the initiatives – people will be forced to bring their CASH into the system sooner than later. They may not pay 45% under amnesty scheme but they may show more income at the time of filing IT Return in parts and pay 30% on the same. When more income is reported – GDP will move up automatically. DIRECT TAX collection will also move up.

Many guys who have MARRIAGE and other auspicious occasions during this year and future will be forced to spend money and take BILLS for JEWLLERY and things like that. Media reports say TOP JEWLLERS are planning for selling with BILLS only.

Just to give you hypothetical example say a LUXURY BRAND is selling products, which are costing Rs.5 lakhs upwards. In the PAST the stores all over INDIA might be selling 1000 products in a year and reporting say 200. Now due to curbs the store might be selling just 500 products but it will be reporting 400 products with the BILL. When it is reported in BILL – it comes into the PROPER CHANNEL and GDP will double up automatically.

The persons who have really big cash out side India will bring their cash to INDIA in some way or the other, as the WORLD scenario is not healthy. For them it will make much sense to pay tax and take control over their money rather than losing all the money in FOREIGN BANKS or COUNTRY.

Mr. Modi is also not trying HARD to bring TAX HEAVEN money to India as he is aware that they will have to bring their money to India as the situations there is not STABLE. This money when it comes to India – will add to GDP.

What does it mean for SHARE MARKET?

The major portion of money will go into SHARE MARKET. We have already given our NIFTY target of 15000 for SEP., 2018 way back in APRIL 2016!! We have already seen the above scenario and we are just investing.

Time and again we are telling you to invest. This time you have solid reasons for investing. Do not miss.

If you need HELP in investing, please contact us. August Month is about to START. I suggest you can join us NOW.

Have a FNATASTIC WEEK AHEAD.

Follow me on Twitter @hiteshmparikh /  WhatsApp - +91-9869425399 / www.hiteshmparikh.com

Live With Passion…Invest With Passion.

Hitesh Parikh.

www.hiteshmparikh.com