Indian Economic Growth

[sgstrait]

Interesting article here: http://economictimes.indiatimes.com/new ... 007787.cms

Whilst China is intentionally applying the brakes to its growth in order to move towards a more consumer-orientated/balanced economy, it is India that is now fueling growth in the region, in a very sustainable and broad-based way.

One of Singapore's priorities is to be future-ready in order to use its unique position to tap into both Indian growth and Chinese consumption opportunities. Easier said than done, especially as China's move towards consumption is nowhere near guaranteed to succeed, but I can sense it has been happening for some time.

My MNC's investment dollars, of which there will be precious few as soon as the Fed starts reducing liquidity this year, are now targeting ASEAN/SARC, and less so ASEAN/China.

[Wd40]

Yes, both GIC and Temasek are super bullish on India.

http://m.timesofindia.com/business/indi ... 032691.cms

[livingontheedge]

Depending on your horizon - ASEAN, India and China are great investment opportunities. The current economic slowdown is practical and realistic but over the long term (10 to 20 years) China is still an excellent investment. For India I find that the most investors are assuming Modhi's restructuring of the bureacracy, state regulations and taxation, and terrorism is guaranteed, but then again with or without structural reforms India will grow exponentially just that the former will provide better returns, I think.

[sgstrait]

Interesting... Guess India is higher risk but, as always, higher return potential, whereas China returns have moderated.

[Wd40]

India is not higher risk. It is just more volatile. High returns from India in the long term is a sure thing, if you can stomach the volatility.

Just compare the dow, ftse and sensex charts for the last 15 years.i.e. since 2000. Dow is up less than 70%. FTSE is basically stagnant. Sensex has gone up 6 times in local currency terms and probably 3 times in US dollar terms.

Shanghai composite, I just looked at the chart. In 2000 it was about 2400 and then it went all the way upto 6000 levels in 2008 and now it is at 4000 levels. So it has basically doubled in 15 years but in between it has been a complete yo yo casino.

India is the best performer.