Monday, May 25, 2020


INDIAN ECONOMY POST LOCK-DOWN PERIOD

My views about post lock-down period in India. 

1. Economy will bounce back 

2. There will be huge surge in demand for personal vehicles viz cars and bikes 

2. People will buy life style products  viz cloths, accessories.  Huge demand will be there for mid segment branded items. 

3. Work from home will be new norms. But at the same time, huge demand will be for small offices. Working in a office environment gives lot of  psychological as well as physiological advantage. 

4. Demand for mid range housing will surge.  People will love to own their own houses instead of high rented accommodation. Owning a house gives lot of mental strength to live dignified life in a stressful situation like lock-down. 

5. Rental of commercial properties will come down atleast for next 12 months. People will shift from high rental properties to low rental properties. 

6. A wave of churning will takes place in Malls.  Developers will shift to revenue sharing models. Attempt will be made to rationalise common area maintenance charges. 

7. Deposits in Nationalised and big private banks will surge as the safety of the money will be the prime objective of the middle and upper middle class. So the interest rate will come down. 

8. Huge investment will be there in infrastructure projects thereby creating more demand in overall economy. 

9. Higher allocation in MNREGA will give rise to consumption.

10.  Demand for electronic products like laptop, computers, mobile phone will increase as more and more people have developed habit of working from home and also students will be  taking online classes. 

11. Huge investment is expected in medical colleges and pharma facilities to cope with increased demand of good medical care. Accordingly associated industries like surgical equipment, lab chemicals, furnishing facilities will also get jump. 

So no need to panic. 

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