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Welcome to India Extra
India is the 5th largest economy in the world (ranking above France, Italy, the United Kingdom, and Russia) and has the second largest GDP among emerging nations. 'By any measure, India has a lot going for it: a market-friendly government led by Prime Minister Atal Bihari Vajpayee, an economic boom fed by Bangalore's computer-software companies and the mushrooming of outsourcing centers across the country, and a stock market that gained nearly 85% in 2003. India's current prime minister, M. Singh, is a major believer in free markets and open competition. He understands that foreign investment and competition lead to more jobs, more taxes and more revenues in the long run. Singh, then serving as India's finance minister, immediately rolled up his sleeves, took out a $5 billion IMF loan and opened the country up to foreign direct investment and foreign competition. He simplified the tax structure. He lowered many of the ridiculously high tariffs. And he slashed subsidies for domestically produced goods. And now he has vowed to open India's largest remaining private sector to foreign investment and competition - its $200 billion retail sector. In fact, in an interview with India's Financial Times. The result: India's economy grew between 6-7% each year after. It now has over $145 billion in foreign reserves in the bank. And the Indian stock market is up 505.6%. At a forward-earnings ratio of 17, Bombay's index is still relatively undervalued compared with Standard & Poor's P/E ratio of 20. Moreover, proponents note that Indian companies' return on equity to investors is 24% compared with 12% for China. The Indian economy has averaged a 6.8% GDP growth rate since 1994 and saw an 8.2% GDP increase last year. Indian GDP breaks down into three main sectors, with agriculture and industry each accounting for a quarter, while the service sector accounts for half. India's service sector is the major source of the country's economic growth, and it seems unlikely to slow down. Here’s the kicker: India is expected to beat China’s GDP growth rate in two years! Did you know that 25% of the people in the world under the age of 25 live in India. In fact, 50% of India's total population is under 25...and 80% of the population is under 45. This means India has a middle class that exceeds the population of the USA and the European Union! Short story, higher population equals higher energy consumption equals increased oil imports. It adds the equivalent of a Canada to its middle class each year. Real wages are on the rise. And just about every major sector in India is growing. The stats keep growing... - India's mobile phone sector is up 53% in the last 18 months - Between now and 2007, India has earmarked over $117 billion to improve its infrastructure (power plants, ports, roads and airports) - And the banking sector in India is on the rise as more and more Indians are taking out loans to buy their first house and car. India is already capitalizing on its greatest assets: it has the second-largest pool of software developers in the world after the United States, and the second-largest pool of English-speaking scientific, technical and executive manpower on earth. Business Week reports that there are now more IT engineers in Bangalore (150,000) than in the Silicon Valley (120,000)! India's exploding demographic of low-cost, high-IQ, English-speaking brainpower - without question - will have a more far-reaching impact on your investment dollars. The cost of this India financial newsletter is $250 annually, which includes a weekly e-letter and any company updates on buying and selling. India is hot. Right now, its gross domestic product growth is second only to that of China, and the government, bankers, and investors are keen to cash in on it.' This global mega-shift quite possibly is the 'next big thing' in the investment world. Smart investors who can foresee major trends, and understand how to capitalize on them, are the ones who make millions. |
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| World Wide Rhino LLC does not act as an investment advisor or advocate the purchase or sale of any security or investment. You may not forward, reprint or post any of the material read here, as it contains information exclusively provide for the benefit of subscribers to World Wide Rhino LLC. The organizations, their officers, directors, employees and associated individuals may own or have positions in recommended securities discussed in the publications and may add to or dispose of the same investments recommended in this publication. Investments should be made only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company. All World Wide Rhino LLC employees and agents must wait twenty-four hours after an internet publication to follow any recommendation. Past performance does not indicate future returns. Do not invest with monies that you can not afford to lose. By logging onto these newsletters, you are agreeing to these terms. | ||||