Retail Savings and Investments in India – Coronavirus (COVID-19) Sector Impact

2020-07-14
Price :
Published : Jul-2020
No. of Pages : 19

Retail Savings and Investments in India – Coronavirus (COVID-19) Sector Impact

Summary

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with most countries across the world registering declines in their economic growth for the year to date. Many economists and institutions have cut their forecasts as a number of countries officially slipped into recession in Q1 2020.

We are seeing a similar trend in India – according to estimates GDP is expected to contract by 1.5% over the course of the fiscal year, and India is anticipated to slip into recession by the end of fiscal year 2020-21. The decline will have an adverse impact on all sectors, including retail savings and investments. While the government is easing restrictions in a calibrated manner, the surge in daily active case numbers is worrisome, with the country seeing a spike in new cases across several states. India now has the third-highest number of COVID-19 cases in the world behind the US and Brazil.

This report focuses on the impact of the coronavirus outbreak on the Indian economy and the country’s retail savings and investment market. It also highlights the measures adopted by the government to combat COVID-19. Based on our proprietary datasets, the snap shot contrasts GlobalData’s pre-COVID-19 forecasts and revised forecasts of total retail bond, deposits, equities and mutual funds holdings in terms of value and growth rates. It also analyses the effects on HNW wealth, examining the importance of different industries as a contributor to HNW wealth.

Scope

– India’s retail savings and investments are forecast to grow by a mere 0.2% over the course of 2020 as economic productivity has plummeted thanks to the impact of COVID-19. Although the easing of lockdown restrictions and restarting of economic activities has gradually improved stock market performance, volatility continues to persist as the pandemic remains a threat to the economy, with the number of cases still intensifying. Consequently, retail equity and mutual fund holdings are expected to take the brunt of the economy’s slowdown, with respective declines of 17.5% and 12.2% anticipated.
– Retail deposits have turned out to be the biggest gainer courtesy of a flight to safety away from risk assets. Additionally, a subsequent downturn in the consumer confidence index is further driving demand for deposits. According to the Reserve Bank of India (RBI), the index contracted from 85.6 in March 2020 to 63.7 in May 2020. However, more pronounced declines in risk asset holdings mean our revised overall retail savings and investments forecast for 2020 is 5.8 percentage points lower than before the onset of COVID-19.
– HNW wealth is forecast to grow by a mere 0.5% during 2020. However, the healthcare and technology sectors – the two largest contributors to HNW wealth – have held up more robustly than others. This will aid a rapid recovery, with HNW wealth growth forecast to bounce back to 13.9% in 2021.
– The financial services sector is among the most impacted in the short term due to an increase in bad loans. The NIFTY Banks index has already declined 34.1% for the year to June 30, 2020.
– The sectors which took the most damage – such as hotels, restaurants, and leisure – have low contributions to HNW wealth, allowing HNW wealth growth to bounce back rapidly with a strong 13.9% increase forecast for 2021.

Reasons to Buy

– Make strategic decisions using top-level revised forecast data on the Indian retail savings and investments industry.
– Understand the key market trends, challenges, and opportunities in the Indian retail savings and investments industry.
– Receive a comprehensive insight into the retail liquid asset holdings in India, including deposits, mutual funds, equities, and bonds.

Filed in: Banking & Finance, Wealth Management
Publisher : GlobalData
More Reports
Title Price Buy Now

New Zealand Cards and Payments – Opportunities and Risks to 2024

New Zealand Cards and Payments - Opportunities and Risks to 2024 Summary GlobalData's 'New Zealand Cards and Payments - Opportunities and Risks to 2024' report provides detailed analysis of market trends in New Zealand's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, credit transfers, cheques, and direct debits during the review-period (2016-20e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country's competitive landscape, including market shares of issuers and ......
$2750

Citigroup – Enterprise Tech Ecosystem Series

Citigroup - Enterprise Tech Ecosystem Series Summary Citigroup is a provider of diversified financial services. Its portfolio of offerings comprises retail, commercial, and investment banking; securities brokerage; trade and securities services; and wealth management solutions. The group provides a range of accounts and deposit services, debit and credit cards, loans and mortgages, small business banking solutions, treasury and trade services, and corporate and institutional lending. Additionally, Citigroup offers securities, asset management, and capital market services. The group has an operational presence in the Americas, Europe, the Middle East, Africa, and Asia Pacific. It serves individuals, high net worth clients, corporate companies, SMEs, and institutional and government client......
$1495

Israel PESTLE Insights – A Macroeconomic Outlook Report

Israel PESTLE Insights - A Macroeconomic Outlook Report Summary Financial intermediation, real estate and business activities contributed 32.5% to the gross value added (GVA) in 2019, followed by mining, manufacturing and utilities (14.6%) and transport, storage and communication (12.6%). According to MarketLine estimates, the three sectors grew by 6.7%, 1.86% and 6.18% respectively in 2019. The overall Israeli stock market index has recorded a downward trend over the past year. Global panic due to the COVID-19 pandemic caused a huge crash in the index in March 2020, but the index recovered between April and June. Scope - Israel's logistic and transport infrastructure deteriorated during 2016-2018, evidenced by a decline in the country's ranking in the Logistic Performance Index from ......
$500

Tenpay – Competitor Profile

Tenpay - Competitor Profile Summary Tenpay is the second-largest online payment platform in China, behind only Alipay. It was launched in 2005 by Tencent, China's leading internet company. Tenpay supports online, in-app, and in-store payments both in China and abroad. Tenpay users can make fund transfers to other users' Tenpay accounts or their bank accounts. Users can also make mortgage and credit card payments, and can even invest in various financial products. Tencent also owns popular social media platforms including QQ Messenger and WeChat, and has integrated payment services into these apps called QQ Wallet and WeChat Pay, allowing users to conduct payment transactions directly. Tenpay accounts for around 38.8% of the third-party mobile payments market in China. It is concentrated......
$350

Singapore PESTLE Insights – A Macroeconomic Outlook Report

Singapore PESTLE Insights - A Macroeconomic Outlook Report Summary Singapore's Central region acts as hub for most of the financial and professional services firms. The West region is dominated by port and water transport industry due to its proximity to the port, while the East region is dominated by the airline industry due to its proximity to Changi Airport. Financial intermediation, real estate and business activities contributed 32.5% to the country's gross value added (GVA) in 2019, followed by mining, manufacturing and utilities (22.12%) and wholesale, retail and hotels (19.4%). In nominal terms, the three sectors are expected to decline by -3.12%, -4.9%, and -2.9%, respectively, in 2020. Majority of inward FDI was towards the financial and insurance services sector in 2018 Sc......
$500

Nicaragua Insurance Industry – Governance, Risk and Compliance

Nicaragua Insurance Industry - Governance, Risk and Compliance Summary GlobalData's 'Nicaraguan Insurance Industry - Governance, Risk and Compliance' report is the result of extensive research into the insurance regulatory framework in Nicaragua. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal sys......
$950

Qatar Insurance Industry – Governance, Risk and Compliance

Qatar Insurance Industry - Governance, Risk and Compliance Summary GlobalData's 'Qatar Insurance Industry - Governance, Risk and Compliance' report is the result of extensive research into the insurance regulatory framework in Qatar. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the co......
$950

Global Motor Insurance Market 2020 – Thematic Research

Global Motor Insurance Market 2020 - Thematic Research Summary GlobalData's 'Global Motor Insurance Market 2020 - Thematic Research' report provides a detailed outlook of the global motor insurance industry. This report provides in-depth market analysis, information, and insights into the global and regional motor insurance industry. It provides values for key performance indicators such as written premium and loss ratio during the review period (2015-2019) and forecast period (2019-2023). The report gives a comprehensive overview of the global and regional motor insurance industry, key trends, drivers, challenges, regulatory overview and developments, and impact of the COVID-19 on the industry. It provides insight into key technological developments impacting the global motor insur......
$3999

Kuwait Cards and Payments – Opportunities and Risks to 2024

Kuwait Cards and Payments - Opportunities and Risks to 2024 Summary GlobalData's 'Kuwait Cards and Payments - Opportunities and Risks to 2024' report provides detailed analysis of market trends in Kuwait's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry including cards and cheques during the review-period (2016-20e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes. The report brings together GlobalData's ......
$2750

Iran PESTLE Insights – A Macroeconomic Outlook Report

Iran PESTLE Insights - A Macroeconomic Outlook Report Summary Mining, manufacturing and utilities contributed 33.2% to Iran's gross value added (GVA) in 2019, followed by financial intermediation, real estate and business activities (15.6%), and wholesale, retail and hotels (14.9%). Overall, the Tehran Stock Exchange index exhibited a spectacularly sharp growth of 551.6% between July 1st 2019 to July 1st 2020 Scope - According to the Global Competitiveness Index for 2019, Iran's infrastructure was ranked 80th out of 141 nations - Tehran generated around 15.8% of Iran's GDP and comprised 16.6% of the country's population, as of 2019 Reasons to Buy - Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic,......
$500
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy