August 19, 2025

Have you heard the latest buzz from Marketsmith India? The Head of Equity, Mayuresh Joshi, is all smiles about India’s economy! With exciting news recently, he says the future looks bright and full of promise. First off, the big thumbs up from S&P Global - India’s sovereign rating was upgraded, showing the world is confident in our country’s growth. But that’s not all! People are eagerly waiting for the GST rate rationalisation expected before Diwali. Joshi points out that this move will ignite consumption, which is the heart of any economy. Even though there are questions about how the government will manage any revenue loss, Joshi thinks boosting consumption is the need of the hour, especially with ongoing tariff threats from the US. If India negotiates well, the fear of GDP hit due to US tariffs will shrink. What about the market players? Here's the spicy part! Joshi says foreign investors like FPIs, FIIs, and FDIs have been holding back but “over the next few months, they will have to come back to India.” Why? Because India’s numbers look strong — solid domestic flows, promising corporate earnings, and a great demographic edge – all make India one of the best markets worldwide. Joshi also highlights the steel sector's exciting update. The government plans to extend safeguard duties on imports of steel from China and Vietnam for three years, starting at 12% and slightly tapering off. This is a big win for domestic steel makers, giving them protection against cheap imports. Joshi explains, “Any kind of anti-dumping duty creates a safeguarding impact which is meant to protect domestic interests.” But here’s the catch: steel prices depend heavily on global markets, especially on London Metal Exchange rates. Demand from big markets like North America and Europe and supply from China still hold strong influence. So, pricing might stay a bit soft. Still, Joshi is hopeful. With input costs expected to stay low and companies boosting backward integration, the steel players focusing on the home market might report better numbers soon. It looks like steel is shining again! Summing it up, Joshi says the markets have overcome uncertainty. The combined effect of the sovereign upgrade, GST rationalisation, and protective duties paints a lively picture for the Indian economy. So, keep your eyes on India — the growth story is just getting juicier! "We should remain optimistic and positive on the economy and the India growth story," Joshi encourages us all. So, gear up folks, India's financial journey is hitting top gear, and it's time to enjoy the ride!

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Tags: Mayuresh joshi, Indian economy, Fpis, Fdis, Steel safeguard duty, Gst rationalisation,