FII Selling, Oil Prices And The Risk Facing Indian Stocks | Govindraj Ethiraj | The Core Report

India’s official 7.8% GDP growth masks a deeper economic disconnect, as sluggish consumer demand and deteriorating civic infrastructure contrast with government-touted output figures. The dairy sector presents a significant formalization opportunity; industry veteran Rajiv Mitra notes that while recent capital inflows are welcome, sustainable growth requires investment in farm-level productivity, quality assurance, and supply chain infrastructure rather than just processing capacity. Meanwhile, the financial landscape faces distortions from aggressive central bank bond interventions. Former SEBI member Ananth Narayan highlights that artificially low interest rates suppress fixed-income market development, forcing domestic savings into volatile equity and overseas assets. To achieve sustained capital formation, policymakers must move toward market-determined rates and address tax imbalances that currently penalize fixed-income investments, allowing for a more efficient allocation of capital across the broader economy.