{"id":2020,"date":"2019-12-18T15:47:00","date_gmt":"2019-12-18T15:47:00","guid":{"rendered":""},"modified":"2025-11-10T15:53:24","modified_gmt":"2025-11-10T10:23:24","slug":"is-the-next-multi-year-bull-run-here","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/is-the-next-multi-year-bull-run-here\/","title":{"rendered":"Is the Next Multi Year Bull Run Here?"},"content":{"rendered":"
<\/div>\n

Our last article was all about the conversation with Mr. Mehta an investor about going back to the golden era of Indian economy. Click here<\/a> to read the article.<\/p>\n\n\n\n

After pointing out a few charts on why we\u2019re all set to revisit the golden phase of 2003-2008, Mr. Mehta was eager to know if the Indian indices shall grow 6 times from hereon.<\/p>\n\n\n\n

So coming back to the conversation from where we left yesterday, he asked me, \u201cTell me more on the fundamental strength of an economy. I am listening to a lot of negativity out there.\u201d<\/p>\n\n\n\n

\u201cDo you remember the economic reforms undertaken by the government during 1999-2003, which set the foundation for the rapid growth in the next few years.\u201d<\/p>\n\n\n\n

\u201cYes somewhat. I remember the Golden Quadrilateral and the Pokhran nuclear test,\u201d he replied.<\/p>\n\n\n\n

\u201cWell, Mr. Mehta, you are right to a great extent. However, it was not just about the Golden Quadrilateral or the nuclear test. There were a host of other reforms too. Most of us consider the year 1991 as the watershed year in India\u2019s economic reforms. However, there were some path-breaking reforms initiated by the government then, which deserve a huge applaud. Let me give you a quick recap,\u201d I told him.<\/p>\n\n\n\n

Hence, I showed him the list of reforms undertaken by the government then during 1999-2003.<\/p>\n\n\n\n

Fiscal Responsibility Act<\/h3>\n\n\n\n

The NDA government in 2003 enacted the Fiscal Responsibility and Budget<\/a> Management (FRBM) Act to reduce budgetary deficits and boost savings in the public sector. It is a well-known fact that the whole idea of keeping fiscal deficit under check at 3% of gross domestic product (GDP) can be credited to the then government.<\/p>\n\n\n\n

Telecom Reforms<\/h3>\n\n\n\n

India now has the second-largest base of mobile phone users in the world. It was the government\u2019s initiative during 1999-2003 that ended the state monopoly of BSNL and MTNL in the telecom sector in 1999 and introduced a new Telecom Policy where a revenue-sharing regime was started. This revenue sharing model was effective for making call rates<\/a> and mobile phones affordable.<\/p>\n\n\n\n

Disinvestment<\/h3>\n\n\n\n

The government in 1999 first set up a separate department for disinvestment. Large disinvestment initiatives undertaken in this period include companies like Bharat Aluminum Company (BALCO), Hindustan Zinc as well as Videsh Sanchar Nigam Limited (VSNL), and hasn\u2019t India benefitted a great deal from them?<\/p>\n\n\n\n

Opening up of the insurance sector<\/h3>\n\n\n\n

Until 1999, state-owned entities had a monopoly in both life and general insurance segments. NDA government allowed privatization by permitting foreign direct investment<\/a> of up to 26%. This led to several global<\/a> insurance companies entering India, hence giving an extremely strong boost to the sector.<\/p>\n\n\n\n

Massive infrastructure development<\/h3>\n\n\n\n

The government during 1999-2003 laid the foundation stone for the Golden Quadrilateral project on 6 January 1999 to establish faster transport networks between major cities and ports, provide smaller towns better access to markets, reduce agricultural spoilage in transport to drive economic growth. During 1999-2003, India also witnessed a massive public investment in highways and roads, which had a significant multiplier effect on rural economic growth. The government had devised a sustainable funding model through the petrol and diesel cess for the highways.<\/p>\n\n\n\n

\u201cTo summarize Mr. Mehta, during 1999-2003, the Indian economy had to face significant challenges due to Kargil war, nuclear sanctions and dot-com bust induced global recession. However skillful macroeconomic management by the government then resulted in a virtuous cycle of lower inflation<\/a> and interest rates, along with low fiscal deficits, leading to higher investment and higher economic and export growth. This was also a period when foreign investment inflows surged to record highs. So, it can be rightly said that the foundation for high growth witnessed by the Indian economy during the golden years of 2003 to 2007 had its roots laid down in the previous years,\u201d I explained.<\/p>\n\n\n\n

Mr. Mehta by now looked immensely surprised.<\/p>\n\n\n\n

\u201cWell Mr. Mehta, picture abhi baki hai\u201d I told him.<\/p>\n\n\n\n

“I have only told you about the economic reforms undertaken by the government between 1999-2003. The real reason why we started this discussion has still not been answered,\u201d I said.<\/p>\n\n\n\n

This is where the real story starts.<\/p>\n\n\n\t\t

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Related investing topics<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n How to Invest in Share Market? <\/h3>\n \t\t \t

Considering the volatility, investing in stock markets is both an art and science.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n 5 Best Places To Live After Retirement In India <\/h3>\n \t\t \t

While some retired people set sail on voyages worldwide, others look forward to spending their time in relaxation and comfort.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n 90% People Lose Money in Stocks? <\/h3>\n \t\t \t

Isn't it shocking? But it is a fact. There are countless reasons why investors lose money in stock markets.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n Is Long Term Investing Always Safe? <\/h3>\n \t\t \t

Let\u2019s understand what long-term means before we explain why Long Term Investing may not always be safe.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\n\n\n

Read more: \u00a0How Long-term investing helps create life-changing wealth \u2013 TOI<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Our last article was all about the conversation with Mr. Mehta an investor about going back to the golden era […]<\/p>\n","protected":false},"author":5,"featured_media":2021,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-2020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/2020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=2020"}],"version-history":[{"count":3,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/2020\/revisions"}],"predecessor-version":[{"id":63366,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/2020\/revisions\/63366"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/2021"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=2020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=2020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=2020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}