An interesting piece by Tom Stevenson in The Telegraph:
Tom Stevenson notes:
“For a few reasons,
I think investors are right to view India as the emerging market of choice. First, unlike many
developing countries, India is not a hostage to the ebb and flow of the Chinese
economy. As a net importer of commodities, India is a beneficiary of today’s
low metal and energy prices. China may be India’s second-biggest destination
for exports but it is way behind the US as a destination for Indian goods and
services. Second, India’s economic development is years behind China’s, with
enormous potential for catch-up. While the Middle Kingdom suffers slowing
growth as it navigates a difficult transition from an export and investment-led
economy to one fuelled by domestic consumption, India’s potential growth keeps
rising. Goldman Sachs recently predicted that India could grow at an average of
9pc between 2016 and 2020 if it makes progress on structural reforms to its
labour market, infrastructure and education.”