While India is currently growing at 7 percent give or take 0.50 percent, the people feel that the growth rate can reach 8-9 percent or maybe even double digits, and a lot of structural reforms are necessary to attain this, says stock market guru and managing director of Prime Sec N Jayakumar.
Commenting on the election results, Jayakumar said the Bharatiya Janata Party has been addressing the physiological needs of the people. “Maslow's 'hierarchy of needs' is a very interesting concept. It is kind of a pyramid where the base of the pyramid addresses what we call the physical needs of human beings. As you go up the pyramid, you have emotional needs, then you go to social needs etc. until you reach the top of the pyramid which is your self-actualisation needs, that you become interested in spirituality etc. I call this election the Maslow moment for India," he said.
Explaining his view, he said: "I say the Maslow's moment because what brought the BJP back with the kind of unprecedented numbers is the fact that they addressed or they have been addressing the base of the pyramid. The base of the pyramid, the basic needs, translate differently. This government has provided LPG cylinders to light, electricity to toilets. If you look at the masses of India, it has been addressing their basic needs.”
“This is not a Formula One kind of a pit stop where you do something to the capital market and you feel you have improved wealth because a few people in Mumbai and Delhi feel richer. This is not about markets. I don’t believe that, for them the market is just a side show. And none of us should be complaining that after 75 years you actually have a solid growth of the base, the pyramid gets stronger and therefore the country gets even stronger. I don’t think Indian polity needs dole, they don’t need handouts, what they need is opportunity. They are willing to put in their hard yards,” he further added.
According to Jayakumar, the market is celebrating because it is not negative to it. "All that you are doing is genuinely enhancing purchasing power by creating long term structural pillars in place.”When asked whether this hope trade will continue, he said, “Today, only the absolutely able, the well-deserving only get credit lines from banks or NBFCs. That ought to be the order of the day. The consolidation in PSU banks is clearly on us, with that will come greater risk management, focus on trade worthiness and independence because these will become larger more responsible organisations and institutions. In that context it is only those who are able to have access to credit in the NBFCs space who will continue to grow.”