Economic contraction in India an opportunity for long-term investors: Wood

Chris Wood expects the recently concluded quarter to mark the bottom of the economic contraction

In adversity lies opportunity. The scale of economic collapse in India, according to Christopher Wood, global head (equity strategy) at Jefferies, should be seen as a dramatic opportunity for long-term equity investors.

Earlier this week, the contraction in Indian economy was the worst-ever in nearly four decades with the gross domestic product (GDP) for the April – June 2020 quarter of fiscal 2020-21 (Q1FY21) coming in at a negative to 23.9 per cent year-on-year (YoY). The 23.9 per cent YoY decline in Indian real GDP growth in Q1FY21, and 22.6 per cent YoY decline in nominal GDP growth, is as