This case study is the first in a series of three cases studies that cover the EIC framework for Fundamental Analysis. This case study covers the Economic Analysis part of the EIC framework. It includes various aspects of the Indian economy which once again became the fastest growing economy in the world in last quarter of 2017. A survey by the United Nations Conference on Trade and Development stated that India would remain among the top three investment destination globally till 2019. So, it seemed like a good idea for investors to invest in the Indian stock market and cash in on the opportunity. However, poor infrastructure, corruption, increase in the number of unemployed people, low per hectare yield of agriculture sector, a weak currency, fall in non-food credit growth, and piling up of bad debts in the Indian banking sector could hurt the future growth of the Indian economy. So, the question in front of investors is whether to invest in the Indian stock market or not.

Finance Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

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Issues

The case is structured to achieve the following teaching objectives:

	To understand the significance of economic analysis in the EIC framework
	To understand the dynamics of economic analysis
	To explore whether it is prudent to invest in the Indian stock market or not

Contents

INTRODUCTION

OVERVIEW OF GLOBAL ECONOMY

OVERVIEW OF INDIAN ECONOMY

POLITICAL SYSTEM AND GOVERNMENT

SOVEREIGN RATING

DEMOGRAPHY

AGRICULTURE AND MONSOON

EMPLOYMENT

PER CAPITA INCOME AND PURCHASING POWER PARITY

PERSONAL DISPOSABLE INCOME AND NATIONAL SAVINGS

FOREIGN TRADE POLICY 2015-2020

GOVERNMENT SPENDING

CHALLENGES FOR THE ECONOMY

EXHIBITS

Keywords

Global economy, Balance of Payment, Demography, Sovereign Rating, Agriculture, Employment, Per Capita Income, Purchasing Power Parity, Personal Disposable Income, National Savings, Inflation Rate, Interest Rate, Exchange Rate, Fiscal Policy, Foreign Trade Policy

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