The Indian economy, which took 68 years to hit Rs 2 trillion mark, could well double in the next 8 years, which will present a tremendous opportunity for investors especially in companies which are domestic driven, Sunil Singhania, CIO-Equity-Investment at Reliance Mutual Fund said in an interview with CNBC-TV18.
Domestic companies could well 18-20 percent earnings growth and with goods & services tax (GST) in the offing will lead to shifting from organised to unorganised will lead to compounding growth in most of the domestic-driven sectors in the next 10 years, suggested Singhania.
“Some of these companies might be 10x their size in the next 10-20 years. This happens to a lot of companies across the world. We are optimistic where we could see a growth rate of 18-20x year after year,” he said.
“On the agri side there is some volatility based on monsoon, but thankfully the last year monsoon has been good and the forecast for this year monsoon is also robust. In the next 2-3 years, a lot of subsidies in the fertiliser space will go away which will benefit companies,” said Singhania.
Also, the government want to enhance rural income, raise agricultural productivity and ensure India is self-sufficient which bodes well for fertiliser and agro-chemical sector.
“Global companies want to diversify their sourcing out of China as there is a huge clampdown of pollution as far as Chinese manufacturing is concerned. And, as far as knowledge based chemical space, India has an advantage over China,” He added.