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INVEST IN INDIA
The Indian economy has witnessed a paradigm shift since the last decade and is on a robust growth trajectory. Today, the Indian economy boasts a stable annual growth rate, booming capital markets, and rising foreign exchange reserves.
According to the Asian Development Bank’s (ADB) report titled “Asia Capital Markets Monitor”, the equity market in India, with a market capitalization of approximately US$ 600 billion, has emerged as the third-largest equity market, behind China and Hong Kong, in the emerging Asian region.
The Indian government made a number of policy changes during the past 10–15 years to reduce the discriminatory bias against foreign investors.
The World Bank has predicted that the Indian economy will register an 8% growth in 2010. If this prediction comes true, India will become the fastest growing economy for the first time, surpassing China’s 7.7% growth.
The resilient nature of the Indian economy can be gauged from many leading indicators, such as freight movement at major ports, an increase in hiring, and encouraging data from various key manufacturing segments, namely cement and steel. Recent indicators from reputed indices, such as ABN Amro’s Purchasing Managers’ Index (PMI), UBS’ Lead Economic Indicator (LEI), and Nomura’s Composite Leading Index (CLI), also support this optimism in the Indian economy.
REASONS TO INVEST IN INDIA
High Savings
With a savings rate of 37% of GDP, India’s domestic savings fuels most of its investment requirements, and only 20% of India’s total public debt is sourced from foreign borrowing. With significant investment to be made in upgrading India’s poor infrastructure in the next 10 years (estimated to be US$1.7 trillion) India’s Government is taking various steps to further encourage private and foreign investments.
Diversity
The Indian economy offers investors exposure to a wide range of opportunities from consumer goods and pharmaceuticals to infrastructure, energy and agriculture. With its strong services sector (comprising 50% of India’s economy), particularly in knowledge-based services (IT, software and business services) India has proved that industrialisation and the export of commodities and resources is not the only path to rapid economic development.
The Indian economy offers investors exposure to a wide range of opportunities from consumer goods and pharmaceuticals to infrastructure, energy and agriculture. With its strong services sector (comprising 50% of India’s economy), particularly in knowledge-based services (IT, software and business services) India has proved that industrialisation and the export of commodities and resources is not the only path to rapid economic development.
Size of India
India’s GDP is currently US$1.3 trillion, making it the 8th largest economy in the world. However, in PPP terms, which recognises India’s low cost base, the GDP notionally rises to three times this amount (US$3.8 trillion) which places it on a similar size to Japan and, by 2013, it will become the third largest economy in the world (after the USA and China) in PPP terms. However, despite representing 7.5% of Global GDP (on a PPP basis) in 2010, India attracts less than 0.5% of investment inflows. An anomaly which is unlikely to continue for much longer!
India’s GDP is currently US$1.3 trillion, making it the 8th largest economy in the world. However, in PPP terms, which recognises India’s low cost base, the GDP notionally rises to three times this amount (US$3.8 trillion) which places it on a similar size to Japan and, by 2013, it will become the third largest economy in the world (after the USA and China) in PPP terms. However, despite representing 7.5% of Global GDP (on a PPP basis) in 2010, India attracts less than 0.5% of investment inflows. An anomaly which is unlikely to continue for much longer!
Economic growth
India’s economy is currently growing by 8.75% per annum (in 2010) and this GDP growth rate is expected to increase to 9% – 10% per annum for each of the next 10 years. India’s GDP will grow five times in the next 20 years, and GDP per capita will almost quadruple.
India’s economy is currently growing by 8.75% per annum (in 2010) and this GDP growth rate is expected to increase to 9% – 10% per annum for each of the next 10 years. India’s GDP will grow five times in the next 20 years, and GDP per capita will almost quadruple.
A robust financial sector
India has a robust, diversified and well regulated financial system which has allowed it to weather the global financial crisis without any major difficulties and present an image of quality, resilience and transparency. India’s banking sector is strong, with top quality balance sheets, high levels of competition (there are around 80 banks in India) and strong corporate governance.
India has a robust, diversified and well regulated financial system which has allowed it to weather the global financial crisis without any major difficulties and present an image of quality, resilience and transparency. India’s banking sector is strong, with top quality balance sheets, high levels of competition (there are around 80 banks in India) and strong corporate governance.
Quality of Investment Markets
The Bombay Stock Exchange is the second oldest in the world (165 years) and offers investors a low cost, highly efficient, modern and well governed environment in which to prosper from India’s extraordinary economic growth. The Indian stockmarket has generated investment returns of over 15% per annum for the last 10 years and experts expect this rate to increase in the next decade. More significantly perhaps, Indian investors have doubled their money over the last 3 years at a time when many have lost money in almost every other market
The Bombay Stock Exchange is the second oldest in the world (165 years) and offers investors a low cost, highly efficient, modern and well governed environment in which to prosper from India’s extraordinary economic growth. The Indian stockmarket has generated investment returns of over 15% per annum for the last 10 years and experts expect this rate to increase in the next decade. More significantly perhaps, Indian investors have doubled their money over the last 3 years at a time when many have lost money in almost every other market
Demographics
India is one of the youngest countries in the world, with an average age of 25 and likely to get younger. India’s working-age population will increase by 240 million over the next 20 years. With a population of 1.2 billion, a strong work ethic, high levels of education, democracy, English language skills and an entrepreneurial culture, India is poised to dominate the global economy in the next 20 years.
India is one of the youngest countries in the world, with an average age of 25 and likely to get younger. India’s working-age population will increase by 240 million over the next 20 years. With a population of 1.2 billion, a strong work ethic, high levels of education, democracy, English language skills and an entrepreneurial culture, India is poised to dominate the global economy in the next 20 years.
Domestic economy
India’s domestic consumption, generally led by the private sector, has played a significant role in India’s growth and is expected to remain firm as more people enter the workforce and the emerging middle classes. India’s wealthiest consumers (those earning US$1m or more in PPP terms) will increase by 40 million in the next 10 years! Every sector within India’s consumer market is booming, making India far less vulnerable to external shocks and pressures than other emerging markets.
Source: (www.investinindia.com)
India’s domestic consumption, generally led by the private sector, has played a significant role in India’s growth and is expected to remain firm as more people enter the workforce and the emerging middle classes. India’s wealthiest consumers (those earning US$1m or more in PPP terms) will increase by 40 million in the next 10 years! Every sector within India’s consumer market is booming, making India far less vulnerable to external shocks and pressures than other emerging markets.
Source: (www.investinindia.com)
FEW FACTS ABOUT CALGARY
- Due to its vast grassland, the city is still referred to as Cow Town. It still gives you the images of Wild West.
- The Calgary Stampede, held every year for 10 days, is the largest outdoor event in the world. It features First Nations Exhibits, world’s largest rodeo, concerts, stage shows, a midway, chuck wagon racing, agricultural competitions and a parade. The event attracts over 1 million attendees.
- The average age in Calgary is 35.7 years. Like in all youthful cities, you can expect a lot of partying, sports, romance and a sizzling entertainment scene.
- The city is as diverse as any city can get. A whopping 120 languages are spoken in the city
- Calgary is the cleanest city in the world…Cow Town or not, it seems that the cowboys cleanup real well after all, huh?
- You have a great cause that you want to have volunteers work on? Well, Calgary has more volunteers per capita than any other city in the world.
- Calgary receives an average of 2600 hours of sun per year. This makes it the sunniest city in Canada. If you do not like the cold, perhaps you need to shift countries/cities and live in Calgary. Besides, 26% of the population in Calgary is not born Canadian…you will be in good company.
- Calgary has an altitude of 3,800 feet. This is well above the average among the Canadian cities. This means that the city is neither too hot nor too cold.