The recent data on India’s economic growth clearly point to a slowing economy. But, confidence metrics like the PMI data show a slightly divergent trend lending hope that the economy will regain momentum. Considering the global growth trends, the task of ramping up domestic growth in the near term looks daunting. We will see growth return only over several quarters. This would mean preparing for a slowing economy that would try to bounce off its recent lows.
What should investors change about what they do? Firstly, investors must understand our Nation’s growth trajectory. We need to adjust our expectations to emerging data. Evidence must be factored in constantly. A measured investment approach must be taken and scaling up must be done in a sustained manner. Risks must be factored into every individual investment decision and decisions must not be deferred out of fear.
Timely action must be ensured so that participation in investment opportunities is never missed. By the time our growth returns to its higher trajectory, investors must have adequately scaled up their investing. This would ensure that investors fully participate in wealth creation that happens after the growth trajectory changes for the better.
A slowing economy is a good opportunity to invest, achieve higher scale and better portfolio health. This phase must be made life-changing and wealth-creating by every investor.