A glimpse through a financial newspaper tends to give you an overall picture of how good or bad things actually are. I always have believed that a GDP growth rate of 9%+ is not sustainable for India. What's heartening is that global companies are still seeing demand growth from India, which is a positive sign for the economy. Boeing expects demand from India to grow in future and IT/ITES firms and banks are posting good numbers. A majority of this growth is coming from core business growth an not extraordinary or off balance sheet items. This has been the case with HDFC, IndusInd, State Bank of Hyderabad etc., who have all recorded good growth in Net Profit backed by growth in core service fee and Net Interest Income. Real estate companies too have shifted their attention to core infrastructure development from land acquisition. Such adjustments in business focus will ensure stable growth and help mitigate uncertainty to a large extent.
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