Growth
Dynamics
We
are hearing constant news and views on growth trajectory of Indian Economy. We
at JAIN INVESTMENT strongly believe that there is no strong correlation between
growth and equity return. One of the best example is INDIA & CHINA. In last
decade China has grown at the rate of 10-11% and India has grown at 7-8%. Index
return of India in last decade is 13.29% CAGR and China is -4.14%. Following
table depicts GDP of India & Index return in last 30 years.
|
Year
|
GDP in $
Billion
|
Growth in GDP
|
Sensex Return
|
|
1980
|
189.6
|
|
|
|
1985
|
236.6
|
4.53%
|
18.25%
|
|
1990
|
326.6
|
6.66%
|
23.43%
|
|
1995
|
366.6
|
2.34%
|
38.03%
|
|
2000
|
474.7
|
5.30%
|
4.95%
|
|
2005
|
834.2
|
11.94%
|
5.68%
|
|
2010
|
1684.3
|
15.09%
|
21.46%
|
|
30 Years
|
7.55%
|
|
18.11%
|
