11% fall in the stock market since Sonia’s shock victory, on fears that the reform process may stop. But several analysts are pointing out that the Congress party started the reform process ten years ago, and the communists are not going to be part of the government.
And outsourcing continues apace, while China is trying to put the brakes on.
Is this the time to relocate, or invest in India?
Definitely! I would consider both, indeed I have. I went to Bangalore a couple of months ago to take alook for myself and I was impressed! If you can get used to the unbelievable gap between the haves & the have-nots (wouldn’t be easy for me!) it seems like a great place to be right now, and I suspect not only from a business point of view. I also got the impression that life there, particularly with family, would be a couple of notches up in “exhaustion level”, but absolutely doable! If you have an opportunity or a good idea, go for it! Xpet.
one scary thing, stragbasher, about the collapse of the India Stock Market, is that is could be an ominous sign for the collapse SOON of the entire world monetary system, a worldwide major collapse.
More than a month ago, I invested in the Jardine Fleming India Fund. The unit price stood at about 60 USD. In the runup to the election, it went up to 64. And then the results came in and the thing went crashing. To 60, to 56, to 54. Looked this morning, and the thing was down to 48.
Yet, I still believe in India. Over the next few months, with the new government trying to get going, there will still be scary days ahead for the stockmarket. But in the long term, I strongly believe India is the next China. Huge market, English as the official language, no communism, and even if the majority is dirt poor, even a limited middle class would number about 100 million people. Bigger than most European countries.
So I’m closing my eyes for the time being and keep hoping for rewards in the long term. I wanna stick with India, no matter how long it takes.
Yes I can confirm that India is a very good market. If you want to get into India the next one or two years is the right time before indigineous competition and other people realise that China is too cutthroat and will face a slowdown for a couple of years
India is growing at a very steady pace but most foreign companies do not face the same indigineous competition as exists in China. Therefore I really think a lot of companies (except for luxury brands) are wasting money sinking it into China at the moment. If you have a good quality product and low price the place to sell it is India, not China
Unless its very high tech or a famous quality brand you will get killed by copycats and price competition in China.
From the time I spent in India I have these words…
The population growth has reached a critical level. People sleep on the streets at night and you are constantly harassed by children and diseased adults for money.
The infastructure can’t satisfy the demand–NOW and still the population is growing every year. Trains designed to hold a hundred have 4 children in a bunk instead of the one.
So, until they adopt a sweeping new policy, or something changes–I’d keep the cash and look elsewhere to invest. On the side–they have one trial program in to PAY ladies to stop having kids. It is a outside agency (charity) trying this and it seems to work.
Good luck either way. That’s my .02c
That’s a BUY on the construction sector, then, surely???