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Why Invest in India?

Posted by sspventure on September 14, 2009

India is currently providing tremendous opportunities for the investors all over the world to participate in the Growth of India. Last two decades had been very important for the developing countries like India and China.

            China has already proved her metal by becoming the manufacturing hub of the world. These two Asian countries are making lot of waves in the investments world by attracting legendary investors for the significant investments.  Giants in different sectors like Automobile, Chemicals, FMCG, Telecommunications, Information Technology, Defence, Infrastructrue, Power etc are entering into India and China via collaborations with the domestic players etc. The investment which I am talking about is the long term investment means for the minimum of 3-5 years. At this stage the Indian stock market is trading at a P/E ratio more than 20 and is almost ready for the significant correction. Any major correction in the range of 10-20 percent will provide decent opportunities for the investors to enter in the quality Indian stocks.

Some of the major reasons why one should invest some portion of his/her portfolio in India are as below

 Stable Government in India

This year India has the general elections in which UPA (United Progressive alliance) led by the Congress Party won the elections by majority as 262 out of total 543 seats.

Dr. Manmohan Singh with Obama

Dr. Manmohan Singh with Obama

India is the largest democratic election in the world and electorate strength is greater than United States and United Kingdom combined. Continuous second term for this government brings in the continuity in the development activity in the nation.

 Thrust on Infrastructure and Power

India is developing and currently far behind the developed countries in terms of Infrastructure and Power generation and utilization. Power demand and supply situation in India has the deficit of around 12% and Indian industrial sector and the urbanization is hungry for the power.

Worli Sea link project

Worli Sea link project

There is also a tremendous scope for the development of roads, free ways, airports, automobiles, utilities, railways, telecommunication, aviation, hospitals, healthcare facilities etc. The Indian growth story is not solely depending on the export of services and products but it is mostly driven by the domestic consumption. This makes India comparatively less dependant on the other economies.

 Huge population with excellent Skills and big middle class market

India is highly diversified country with hundreds of languages and thousands of dialects.Each and every state in this country is striving for development in different spheres of industrialization. Huge English speaking educated pool of young resources is the major contributing factor for the growth of India. This talented pool of decent earning young People form the largest middle class and upper middle class section on the planet and hence are the great market for consumption. This exponentially growing high earning section of people is fueling the domestic demand/supply mismatch and hence driving the capacity expansion in different sectors.

 Excellent Management and Entrepreneurs

Knowledge based India economy is the fertile ground for the entrepreneurs. Young Indians have a dream to become the next Ratan Tata, Narayana Murthy and Dhirubhai Ambani of the corporate world. India has an extraordinary talent pool with virtually limitless potential to become entrepreneurs and excellent managers. People of Indian origin like Indra Nooyi, Vikram Pandit, L.K.Mittal, Sabir Bhatia, Vivek Paul and Sanjay Jha are highly successfully managers in some of the top companies in USA.

Ratan Tata launching Nano

Ratan Tata launching Nano

India is well positioned for the excellent growth in the next couple of years. It provides and excellent opportunities for the investors all over to world to take part in the growth of this country. Any serious growth investor can invest in Indian stocks market on any correction here on. If you are able to grab the Quality stocks/funds at the reasonable price and having a long term horizon for your investment you will surely reap the benefits.

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