If you ever thought India is a rich country inhabitedby poor people then this is the time to invest in this poor people’scountry. As per Forbes magazine India stands 62nd inthe list of best country for doing business in 2017 and On Unctad list ofinvestment destination India ranks 3rd. India possess ample amount of natural and humanresources. India has population of 1.25 billion andbeing an Indian we never go out of manpower.As per National Population Commission, by the year 2026 India will contribute173 million population in working age group.
It has locationaladvantages too. It is close to some of the South-East and Middle-Eastmarkets and connected via sea route with many countries for over sea trade. Outof all the countries of Asia, India contains most number of scientists andengineers.
It comes in top 20 country for innovation andtechnology absorption.In 2017 India’s GDP growth was 7.1% andGDP Per Capita was $1700. Even though all this is true why a developed nationlike US wants to invest in India when market cap of top 4 companies of US ismore than entire Indian market. Wouldn’t they want to invest in a country providing betterGDP growth and more economic freedom? The answer to why Indian market is so attractive forinvestment is because Indian market is more reactive than developed economy andit provides opportunities that developed economy do not. For example, Indianpharma sector provides the ability of new firms to take on already establisheddrug manufacturers to patent new drugs and compete at global scale.
Even Indian Banking sector presents the potential of technology-drivenentities to capture the opportunities given by a large population which still doesnot use credit significantly. Even in case of Infrastructure sector Mr. ArunJaitley said we need additional investment of 43 trillion which may providemajor growth opportunities.For now, banking, pharmaand infra are the three sectors to look for investment.
IT sector is said to be the Poster child of Indian economybut it does not provide anything exciting because all of them have convertedthemselves into body shopping outfits. Conclusively we can say that investment in Indiamay not provide investment for dividend or value for developed country but itis an investment in momentum and growth.