If you ever thought India is a rich country inhabited
by poor people then this is the time to invest in this poor people’s
country. As per Forbes magazine India stands 62nd in
the list of best country for doing business in 2017 and On Unctad list of
investment destination India ranks 3rd.
India possess ample amount of natural and human
resources. India has population of 1.25 billion and
being an Indian we never go out of manpower.
As per National Population Commission, by the year 2026 India will contribute
173 million population in working age group. It has locational
advantages too. It is close to some of the South-East and Middle-East
markets and connected via sea route with many countries for over sea trade. Out
of all the countries of Asia, India contains most number of scientists and
engineers. It comes in top 20 country for innovation and
In 2017 India’s GDP growth was 7.1% and
GDP Per Capita was $1700. Even though all this is true why a developed nation
like US wants to invest in India when market cap of top 4 companies of US is
more than entire Indian market. Wouldn’t they want to invest in a country providing better
GDP growth and more economic freedom?
The answer to why Indian market is so attractive for
investment is because Indian market is more reactive than developed economy and
it provides opportunities that developed economy do not. For example, Indian
pharma sector provides the ability of new firms to take on already established
drug manufacturers to patent new drugs and compete at global scale.
Even Indian Banking sector presents the potential of technology-driven
entities to capture the opportunities given by a large population which still does
not use credit significantly. Even in case of Infrastructure sector Mr. Arun
Jaitley said we need additional investment of 43 trillion which may provide
major growth opportunities.
For now, banking, pharma
and infra are the three sectors to look for investment. IT sector is said to be the Poster child of Indian economy
but it does not provide anything exciting because all of them have converted
themselves into body shopping outfits. Conclusively we can say that investment in India
may not provide investment for dividend or value for developed country but it
is an investment in momentum and growth.