Most of us associate China as Asia’s economic superpower but very soon that title may go to India as it is currently a treasure trove of investment opportunities. India will very soon pass China as the world’s most populous nation and possesses one of the fastest growing middle classes of any country on earth. This in addition to the gradual dissolution of the ancient caste system has created an explosion of entrepreneurial activity and the largest socioeconomic class shift ever before seen in history. People have more disposable income than ever before.
Many businesses have already begun to invest in India in industries such as manufacturing, healthcare, and technology, and regulations are being lifted at an unprecedented rate, making India more and more attractive each day. According to Forbes, the most important metric when it comes to investing in emerging market countries is the country’s Financial Market Development, in which India is ranked 38 while China is ranked 56. This means that China has less control over credit growth which means an increased likelihood of a financial collapse.
With the recent landslide victory of Narendra Modi, the political situation in India is the most stable that it has been in years, which used to be a major roadblock for foreign direct investment in India. Also, the introduction of high speed internet will allow hundreds of millions of people access to online shopping which means that e-commerce companies will want to establish a presence in India. Last, India is only just implementing a formalized taxation system so we will soon see an explosion of public infrastructure which means opportunities for manufacturing and construction companies.
India’s sprawling cities are bustling with entrepreneurial spirit and investors should keep a watchful eye on them. Once again, with the eradication of the caste system, ideas are flourishing in ways that they haven’t for decades and as a result, India has the fourth highest number of billionaires in the world and they are only just getting started.
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