This week, Monika unpacks India’s fourth quarter GDP growth of 7.4%, which lifts the annual rate to 6.5% and suggests the slowdown may be over. Despite global challenges, India remains the fastest-growing large economy, driven by strong construction, manufacturing, and agriculture. Private investment is picking up, per capita GDP has nearly doubled in a decade, and sectors like smartphone exports and fisheries point to deeper structural shifts. Monika explains why this rebound looks cyclical rather than structural, and why India’s growth path appears more sustainable going forward.
Next, Monika clarifies the difference between nominal and real GDP. She explains that while nominal GDP reflects the total value of goods and services at current market prices, real GDP strips out the effects of inflation to offer a clearer view of actual economic growth. Understanding this difference is crucial when interpreting GDP trends, especially in inflationary times.
In listener questions, Mr Gupta asks whether he should reduce his 60% equity exposure as he nears retirement and how to manage buying a home post-retirement without taking on new loans. Srinivas wants to know whether short-term geopolitical tensions should prompt mutual fund withdrawals, and Dr Kirti Arora, just beginning her investment journey, seeks clarity on whether consistently outperforming large-cap active funds are better than index funds. Monika responds with thoughtful, detailed guidance rooted in sound financial strategy and long-term perspective.
Chapters:
(00:34 – 07:54) India’s Growth Outlook: Shrugging Off the Slowdown
(07:55 – 09:10) Nominal vs Real GDP: Understanding the Difference
(09:25 – 15:14) Retirement Planning Essentials: Equity Allocation and Funding Your New Home
(15:15 – 17:44) Navigating Market Volatility: Should You Stay Invested in Mutual Funds During Crisis?
(17:45 – 19:57) Active vs Passive Large-Cap Funds: Making Informed Investment Choices
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2132688
If you have financial questions that you’d like answers for, please email us at mailme@monikahalan.com
Monika’s book on basic money management
https://www.monikahalan.com/lets-talk-money-english/
Monika’s book on mutual funds
https://www.monikahalan.com/lets-talk-mutual-funds/
Monika’s workbook on recording your financial life
https://www.monikahalan.com/lets-talk-legacy/
Calculators
https://investor.sebi.gov.in/calculators/index.html
You can find Monika on her social media @monikahalan.
Twitter @MonikaHalan
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Production House: www.inoutcreatives.com
Production Assistant: Anshika Gogoi