Top 6 reasons behind investing into India’s Financial Markets


There are broadly six reasons why you should invest your hard earned capital in India.

To begin with, India is currently the second most populated country, and growing at a rate of 16 million per year, studies indicate, India would surpass China by 2030! Also growing with the population is the country’s per-capita income, which though currently half of China’s is estimated to eventually reach six times that of her neighbour.

The second reason why you must invest is the Government’s decision to invest $500b in improving India’s infrastructure. Better railways, new seaports and airports, power plants and industrial clusters are just some of the sectors where the Government plans to spend huge and improve the same drastically. And better infrastructure does imply better services.

There has been a tremendous increase in manufacture industry. The same today accounts for 30% of India’s economy. India has, over the years, become tantamount with agriculture, textile, IT, hardware and software companies. But in reality, it is the manufacturing sector that is overriding all of them! The manufacturing sector employs 100m people every year. In terms of statistics, 25% of employed people belong to this segment of the economy! And this division is growing at a healthy and sturdy 8.8%.

Did you know corporate earnings in India are growing at an astonishing rate of 35% p.a.? This is the fourth reason why investing in India will prove beneficial. The thirty largest companies in the BSE increased their earnings at an incredible 35% in the first quarter of the year. Ambuja Cement, Bharti Airtel, and Reliance Communications doubled their earnings last year. Tata Steel is expected to report 12% increase while Ranbaxy Laboratories recently reported 19% increase.

Nowadays private equity investors are investing more money in India than in China. Of the total funds coming in through private equities, the maximum goes in infrastructure followed by telecom, banking, finance and real estate segments.

Lastly, the Indian middle class is becoming a spendthrift by the day. Property, housing, jewellery, artefacts, automobiles, gadgets etc. have become necessities. They are no longer the luxury of the “rich”.

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