India and China – the two fastest growing economies of the world. And incidentally both are in Asia! Western countries, in a process of diversification, while looking beyond Japan, are today, looking towards India and China. While China arose from ashes quite some time back, India is still a new kid on the block. Since 1991 when India began with its LPG programme (Liberalisation Privatisation Globalisation), the economy has been rising continuously. It is evident from the fact that India’s GDP today stands at a handsome 9%!
Despite this, we come across investors asking WHY invest in India?
While the reasons are plenty, we would categorise them broadly for your benefit.
SENSEX: SENSEX at its peak was in excess of 20500, while today it stands at 15769, 25% lower than its peak. It is opportune to invest now in the light of strong fundamentals.
Population: The second biggest reason why you should invest in India. While both India and China are hugely populous countries, yet the average age difference is that of a decade! Yes India is ten years younger than China! We are sure you can imagine the numerically growing middle class populace and the subsequent increase in demand for goods and services.
Massive Infrastructure development: Infrastructure was, and still is, the biggest hurdle in the path of India’s development. The Government in a bid towards improving the same drastically is now opening new seaports, power plants and industrial centres. Most of these contracts, it is thought, would go to big shot companies with the expenditure going beyond $400b.
Qualitative manpower: India not only has manpower quantitatively but also qualitatively. English is the dominant language in big cities, and the engineering/technological educational institutions are providing us (and the world at large) with four times numerically specialists as compared to neighbouring China.
Easy to purchase: Lastly, as most of the top companies are listed on the NYSE as ADR, it is very easy to purchase shares.
So next time the ‘WHY’ comes in your mind, do take in consideration these reasons and invest in India.