I was talking to an American friend of mine yesterday about India. He mentioned something that really intrigued me. He said: ’India is growing too fast and furious, it is not good. It can boomerang India back where it all started’. Although we could not have discussion at length, he cited that India is just not ready for this kind of growth.
By the way, he is an investment analyst on Wall Street and follows Indian market closely, so his saying carries some weight.
Long after he hung up the phone, I was still thinking if this tremendous Indian growth is headed for the doomsday.
The harder I thought, the more I am convinced that the case is exactly opposite. This growth is not heading towards doom, but towards new peak. Some of the readers may call me partial, but India has got most basics right, except Infrastructure.
And even in case of infrastructure, there is so much of pressure put on Indian Government now by various business lobbies that it cannot help but improve. I recently read that next 5 year plan has double the budget as compared to previous year on Infrastructure spending.
Look at some of the highlights:
- Indian Stock market has been scaling new peaks literally every month. There have been 5 record single day trading sessions in this year alone including the one we had yesterday that shot up BSE by more than 600 points.
- The rise in Indian market is partly due to on
millionsbillions of dollars that Foreign Institutional Investors have poured over last few months. The amount of FII money currently in Indian market today is more than ever. - Indian Rupee has appreciated a lot. Yesterday it touched the 9 year mark against dollar of Rs. 39.88. Market pundits are predicting that it should breach Rs. 39 by year end. Although, appreciation of rupees has its own plus and minuses, a common Indian man is much richer than he was earlier.
- Indian middle class population is growing at breath neck pace. The growth in salaries of these middle class consumers make them attractive to companies worldwide, making a beeline to enter India. Add to that, India has one of the largest English population which makes them attractive employees to MNCs abroad.
- The tremendous growth in Auto, Retail, aviation, telecom, real-estate and host of other sectors.
- The Indian economy has scaled new heights and became a trillion dollar economy.
There are many more factors, but I have listed down whatever I had at top of my head.
Yes, India is growing too fast and furious, and I am confident that for atleast a decade India will keep growing at the same pace!
Would be interesting to know readers views.