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*BALANCED VIEW OF* *INDIAN ECONOMY* Elvidio Miranda While the macro-economic parameters of the Indian economy seems to be robust, given the way it is projected by the Sensex and the Nifty which are regulated by the stock exchange, it is still hard to perceive if the economy is actually doing well. The correct picture can be ascertained by looking at the positives and the negatives that make for the real time value that exist thus portraying the plus points and the minus points. *POSITIVES*: In the 3 and half years of the BJP rule in the country, what strikes the most is the values of the various stocks in the Indian market which have shown a tremendous growth, however it would be right to say that the market is a little over valued, since the majority of Indian stocks of the Large Caps and the Mid Caps have more than doubled in value, which at least academically means that the investors returns have multiplied, however it would not be wrong to say that the EPS (earnings per share) of the companies that have done well have not necessarily doubled, thus casting aspersions on the intrinsic value of the shares in question. To quote examples of stocks that have outperformed, it would be right to elucidate the performances of a few of the stocks both in the private sector as well as in the public sector. MRF and Eicher Motors have outperformed to a great extent. In 2013, one MRF share was quoted at about Rs. 12,000 while today it is worth a whopping Rs. 64,000. Eicher Motors, the manufacturers of Royal Enfield motorcycles which was quoted at Rs. 10,000 in 2013 is today valued at Rs. 31,000, also a quantum jump. In the public sector we have good performances from the oil refining companies such as IOC, HPCL & BPCL, much in tune with lower crude oil prices which have made these oil refineries very competitive much unlike ONGC, an oil producing company which has lost out because of the fall in crude oil prices. Looking at the impressive stock valuations, one may be tempted to believe that the economy is sound, but these figures seem to be a little inflated. Pharma companies however by and large have not performed well, more because the USFDA having downgraded many of these companies. By and large a positive impact have meant that the markets are for the moment buoyant and better times may also set in. *NEGATIVES*: On the negative side, we have to conduct an analysis of detrimental impact of the various companies which are giving cause for concern about the state of the Indian economy. One stark example is of the private power company owned by the Adanis in Mundra which have accumulated losses of Rs. 49,000 crore and recently the government has bailed out the Adanis by transferring the ownership of this laggard onto the state government of Gujarat, a big burden on the finances of the Gujarat government. Another example is that of the ailing Air India, which has accumulated losses of Rs. 40,000 crore despite the fact the ATF (Aviation Turbine Fuel) having been very affordable and fuel forming the major portion of the expenses of an airline, the Maharaja seems to be in the doldrums, awaiting privatization, which has not taken place so far. Another cause for worry is the declining Gross Domestic Product (GDP) which at 5.7 is the lowest for quite a few quarters now. Another cause for concern is the recent announcement by the Finance Minister that a stimulus package of Rs. 50,000 crore is being lined to push up the economy. Where is the need for a stimulus package now when the interest rates of the banks are very low at 6.5%, which means that industry is getting loans at very low interest rates and thus this stimulus package seems to paint a negative picture of the economy. India imports about 70% of oil used in the country and with crude oil not at a very high rate, the burden on the central exchequer has been reduced considerably by a few lakhs of crores of rupees, a big form of savings. Gross NPAs has reached a level just below the 10% mark in all the banks which does not bode well for the Indian economy.