From The Desk Of Chairman

FROM THE DESK OF A CHAIRMAN           

 

May 11, 2019.

 

Re: 1) Global Economic Scenario 2) Indian Elections

 

Dear Investors,

 

  1. Global Economic Scenario.

 

For last few decades, `Globalization’ has been the key Mantra. Anything that can be produced/generated in the world that is of the best quality and reasonable cost should be produced and transported to the point of consumption. Entire world focused on this, produced goods and services and sold at the places of demand. This helped all the countries well. `Free Market Economy’ and `Globalization’ have been the key corner stone of the world economy.

 

Things have started to change. World has become huge manufacturing hub. Every country has encouraged industries to produce more and sell more. So worldwide production capacities have increased substantially. Same is true for services.

 

AS A RESULT MORE GOODS ARE PRODUCED; SERVICES ARE GENERATED WORLDWIDE THAN DEMAND.

 

Until, there was supply-demand gap, it worked well. Now since supplies are more, World is again tilting back towards `Protection’. US-China conflict is outcome of this phenomenon. With Trump bent on protecting `US Interest’, this is creating a stalemate. China has no option but to produce and sell to USA. Impact of not being able to sell, would be absolutely unbearable for China. This is going to create great tensions and disturbances. For China, this can be a reversal point.

 

For India, this can be an opportunity if India can produce goods of required quality at low costs in quantities and export. It would not be easy to gear up. Plus India will also be at the subject of similar duties like China for exporting goods.

 

Moreover China will try to dump more into India. India is trying to resist but not very successfully. We will need to find our ways and means of protecting Indian businesses.

 

Equations of economy are changing fast. India would need to learn to adopt fast.

 

  1. Indian Elections.

 

Greatest democratic exercise on earth, Indian Elections are about to complete. All our eyes are set on 23rd May. We hope and pray that pro-reform Government is elected with the comfortable majority. Unstable coalition government would be a curse to the country.

 

Agenda of the new Government should be `Jobs’. Jobs are an engine of growth. More jobs mean more income, more consumption, more demands, more revenues and more profits. For creating more jobs, Government would need to focus on `SME’ that provides the highest employment followed by Agriculture that is still at forefront of rural economy. Conducive Environment should be created for this.

 

There are opportunities amongst these challenges. Our role is to bring such opportunities in forefront. We are playing this role well. At CONCEPT, we have continued strengthening our teams. We are now well equipped for investment advisory services for your existing and proposed investment.

 

Please connect with CONCEPT whenever you have surplus money. Happy investing through CONCEPT.

 

 

Yours truly,


Hemant Desai
[ Chairman ]

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