Six reasons, why India can beat China.

[Spring Onion]

You have So many reasons and you still failed to do so thats what matters

 

[kumarkumar1867]

Why India Won't Be The Next China...And That's Bullish


The following story appears in the June 25, 2012 Investment Guide issue of Forbes magazine.

India and China. Western investors love to compare the world’s most populous nations as if they were identical economies at different points on the same timeline. After all, both are growth powerhouses. Over the decade ended in 2010, China’s GDP grew on average 10.3% per year versus an impressive 7.4% for India.

But investors should stop thinking about India as China 2.0. There are good reasons to be bullish on India, precisely because it is different from China.

While China is all about exports, India is an economy that thrives on domestic consumption. With fears of European contagion and anemic worldwide growth affecting *exporters like China and Brazil, fund managers have been looking more seriously at India.

There are now two dozen Indian equity mutual funds and ETFs available to capitalize on the country’s long-term growth. After a dismal 2011 Indian equity mutual funds have gotten off to a strong start this year.

The threat of an economic slowdown in India may give *investors pause, but on a company level fund managers continue to see long-term opportunity.

“The biggest collection of consumer-facing companies that can benefit from structural growth is found in India,” says Sammy Simnegar, manager of Fidelity’s International Capital Appreciation Fund. “The government doesn’t have major shareholdings in the vast majority of listed companies. In China it’s the exact opposite.”

The big story in India continues to be its demographics. It will overtake China as the largest population in the world by 2030 and has one of the youngest populations among emerging-market nations. Nearly half its citizens are under 25.
“Most developed markets are in *decline, especially Japan. China and others are past their peak,” says Prashant Khemka, managing director and chief investment officer at Goldman Sachs Asset *Management India.

Given its burgeoning population of working-age people, India’s biggest opportunity is also its biggest threat. Will its economy be able to provide enough jobs?

Sharat Shroff, manager of the Matthews India Fund, which has returned 10.2% annually since its inception in 2005, points to infrastructure investment as a critical step toward leveraging what he calls India’s “demographic dividend.”
Economists and analysts say the key will be maintaining GDP growth above 7% or so. The movement of rural Indians to urban life could play a big role in achieving that rate.

“Around 30% of the population in India is urban,” notes Khemka. “The movement of labor from agriculture to manufacturing and services can add 1% in growth annually, according to some estimates.”

Would-be investors in Indian funds (see table) should keep in mind that, unlike China, India is a net importer. Its domestic economy’s health will drive returns.



Many fund managers focus on Indian blue chips and the global firms that have established significant foreign divisions there. Hugh Simon, manager of the Dreyfus India Fund, owns names like Novartis India, Nestlé India, Pfizer Limited and Whirlpool of India. His fund is up 10.9% year-to-date.

Simnegar of Fidelity also likes consumer companies with strong brands. “You’re going to have more people with more money in their pockets, who like to buy aspirational products.”

In May the Indian government cut in half long-term *capital gains taxes on private equity investors while simultaneously postponing the implementation of new tax laws until at least April 2013: a good sign in a nation plagued by bureaucracy.
As with any emerging market, investors in India must be able to stomach risk. For example, India is the fifth-largest oil importer in the world. If a spike in oil price causes GDP growth to falter, India’s demographic dividend could very well become a population time bomb


Why India Won't Be The Next China...And That's Bullish - Forbes

 

[rcrmj]

to Americans Tomorrow is tomorrow, to Chinese tomorrow is next hour (we are working our ar$e off to catch-up with the americans)````but to delusional indians``tomorrow is 2050

 

[Srinivas]

to Americans Tomorrow is tomorrow, to Chinese tomorrow is next hour (we are working our ar$e off to catch-up with the americans)````but to delusional indians``tomorrow is 2050

Chinese are made to work by CCP (sate sponsored capitalism) where as Indians follow their dreams and work for it.

You have no idea of India work culture??

 

[Spring Onion]

to Americans Tomorrow is tomorrow, to Chinese tomorrow is next hour (we are working our ar$e off to catch-up with the americans)````but to delusional indians``tomorrow is 2050

they are still stuck up storm in India since google shows AP in China

 

[rcrmj]

Chinese are made to work by CCP (sate sponsored capitalism) where as Indians follow their dreams and work for it.

You have no idea of India work culture??

kid please have some common sense```so according to your moronic hindi logic that CCP 'forced' us to have more money, bigger house, higher education, live longer, healther and cleaner, as well as having nice cars and free movement to other countries, then your high caste rullers are forcing Indians to remain poor, uneducated, have small places in slums, defecting in public, millions starving to death yearly``and most importantly remaining the joke of modern world```

and your so called 'indian dream' is the indian delusion that we know about```

 

[jandk]

chinese are arrogant as hell. their arrogance will be the cause of their fall.

 

[Wright]

Chinese are more homogenious, Han being 90% or so of the population. India has many religions which are in conflict with one another idologically (Islam and Hinudism) and many different ethnic groups that also have had some history of conflict with one another. Diversity eventually leads to conflict.

China enjoys the same advantage enjoyed by Japan and Korea.

 

[applesauce]

chinese are arrogant as hell. their arrogance will be the cause of their fall.

oh lololol this coming from an indian

 

[djsjs]

lol...so in 2013 I will repost this thread as I have promised to do it every 5 years, and i believe reality will either prove those 6 'reasons' or 6 laughing stocks..

indians always give us fun and happiness.thanks for all indians.

 

[tarrar]

Only a Hindi can post such a thing. You CANNOT beat China even in 10000 years, you hindis can't even come close to China in 10000 years. Do you know why? because China is a self built country no body helped them they made themselves & they will continue to grow stronger where as India is asking for all the help from US & it is true US is helping India & both are trying their best to beat China but you can’t do it.

India is good at one thing buying failed & cheap technology.

 

[shuttler]

The initiation of the text and thread are indians' self admission that China has beaten india!

Forgot the biggest reason why india fails miserably

FAKE DEMOCRACY

added subsequently

 

[Amolthebest]

to Americans Tomorrow is tomorrow, to Chinese tomorrow is next hour (we are working our ar$e off to catch-up with the americans)````but to delusional indians``tomorrow is 2050

s.

We are working with lots of freedoms and basic right And we will overcome you in next 50 years with all democratic rights. We will be bigger power than you with all basic rights in long term perspective. I dnt think even after 50 years Chinese common citizin has the right to chose their president by his choice. In long term we will be better.

 

[rcrmj]

s.

We are working with lots of freedoms and basic right And we will overcome you in next 50 years with all democratic rights. We will be bigger power than you with all basic rights in long term perspective. I dnt think even after 50 years Chinese common citizin has the right to chose their president by his choice. In long term we will be better.

hope you can live longer to see what will India come out```or humiliation again

every joke has a punch line````in Indian's case 'will' is the punch line

 

[Amolthebest]

hope you can live longer to see what will India come out```or humiliation again

every joke has a punch line````in Indian's case 'will' is the punch line

What joke? I can understand that CPC has brainwashed you with all the things. Please try to vote to select your candidate and then come to comment here