Forbes India and Crisil Research bring you an overview of long-term, reliable, sustainable economic and market trends
The last word on the global financial crisis has not been said yet. Just when many thought that capitalism was dead, things started looking up. The world quickly went into the recovery mode, led by emerging markets such as India and China. But the fears of a return to crisis-mode have not entirely gone away. In particular, most pundits think the US is not out of the woods. The developing global situation will very much be a consideration for the Indian investor, though the country, itself, is poised for a much more rapid growth phase. Short-term trends suggest a thousand things to confuse the investor. To bring clarity in this age of uncertainty, we looked at trends that have held true through the ups and downs of the world economy over several years. They represent the strong undercurrents of the economy and may very well last deep into the future.
Past: In the last 18 years, the government has increased its dependence on market borrowings to bridge the deficit, from 18 percent to 99 percent.
Past: Despite rising input prices, Indian companies gained in EBITDA margins through higher sales. However, the crisis spoiled the party in 2009.
(This story appears in the 22 January, 2010 issue of Forbes India. To visit our Archives, click here.)