Indian Economy On Healthy Medium Term Growth Trajectory Says BHP Billiton

India's economy is on a healthy medium-term growth trajectory, notwithstanding the typical emerging market difficulties it experienced in calendar 2018, noted the global mining major BHP stated today in its latest earnings update and outlook. Reform signposts have been positive, in general, underscoring the nation's long run potential. The company has noted India's ascent as the number one destination globally for announced greenfield foreign direct investment; the introduction of a nationwide goods and services tax; an improved institutional setting for infrastructure planning and project execution; large scale efforts to bring rural residents into the formal identity and banking structure; and the determined efforts of policymakers to address non-performing loans in the banking system, particularly in the strategically important steel and power industries. On a less positive note, following a period of marked improvement in the country's monetary and macro-prudential policy frameworks, the risk of some regression is expected to be high based on recent developments. The upcoming general election, which will run from April through May, is an important inflection point for India's medium-term outlook. Polling suggests that the incumbent government of Narendra Modi is the favourite, but it is very likely that its current parliamentary majority will be decreased significantly.

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