The Indian Potential

Escrito 10 May 13


A continuación os dejo información para los que quieran invertir en la India.
India’s potential, we believe is one of long-term growth fuelled by structural change, favorable demographics and rising consumer demand. With an average GDP growth of over 6% in the last decade, India has emerged as the 4th largest economy in purchasing power parity terms. India’s economy is expected to be the third largest by 2032 (ranking just after the United States and China) and to grow from US$900 billion (as of today) to US$28 trillion by 2050.
India’s foreign exchange reserves of over US$200 billion place it in an elite club of nations. The composition of GDP has been rapidly changing from Agriculture to Service Industry. From 1970 to 2004, the share of agriculture in the GDP has declined from 46% to 22% and the share of the services industry in GDP has increased from 38% to 56%.
India has embarked upon widespread de-regulation and a massive program of capital expenditure and infrastructure spending. Trade tariffs have been dismantled, foreign direct investment limits have been increased in various sectors, and Capital markets have been liberalized. Approximately, US$100 billion of capital expenditure and infrastructure spending is expected to occur over the next 3-5 years.
The population of India is expected to exceed the population of China by 2040. India has a very large workforce: approximately 50% of India’s population is under the age of 25 and approximately 5% is above the age of 64. It is estimated that the proportion of India’s working age population will peak around 2020 when approximately 64% of the country’s total population will be in the working age 15-60 years of age. The work force is highly educated as there are approximately 250 universities, 1500 research institutions, and over 10,000 higher education institutes in the country.
An increasingly affluent middle class of 350 million and changing attitude towards borrowing among younger consumers is fuelling the demand for consumer goods. The per capita income increased by 98% from 1992 to 2005. The middle class (defined as per capita income more than US$3000) is expected to increase by 4 times over the next decade.
India provides a congenial investment climate with the world’s largest democracy, a well-established and independent judicial system, and freedom of press. India has abundantly available qualified and competent human resources, a rich mineral base, agricultural surplus, and a huge manufacturing capability spanning almost all sectors. The consumer market is large and expanding exponentially. In terms of potential, with its large-scale investment absorption capacity and with economic fundamentals and momentum, India offers attractive potential returns to prospective investors.
The emergence of India as a significant force on the global economic stage, we believe offers investors outstanding potential for long-term capital appreciation. While India clearly involves a higher degree of investment risk relative to developed markets, it is widely expected that the reform process in India initiated in the 1990s will continue to support the country’s rapid growth. In addition, the performance of Indian equities has a low correlation to the movements of both developed and emerging markets. As a result, they represent an opportunity to add a new dimension of diversification to investors’ portfolios.
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Comentarios (1)

xiscom Haz lo que puedas con lo que tengas.

17 May 13

Muy oportuno. Qué gran diferencia entre India y China. Una democracia
y una dictadura. A pesar de su mayor pobreza, existen, para mí, una
serie de factores que me hacen ser más positivo, a largo plazo, con
India que con China. Uno, ya mencionado, es la democracia. El texto se
refiere también a la independencia judicial y a la libertad de prensa
de India, inexistentes en China. También está el hecho de una gran
población angloparlante. Habría que añadir la excelencia de sus
profesionales informáticos. Y algo que definiría como una mayor
creatividad en el caso de los ingenieros indios.