Tuesday, May 9, 2017

India has excellent economic potentials


In India, if you have growth rate – and I am relatively conservative here, some people accuse me of being too negative of Indian economy – but I am saying if India can grow at 4-7 percent per annum for the next 20 years, then earnings in my view will also grow at 4-7 percent in some corporations that are well managed. They will grow at 12 percent, maybe 15 percent. In some companies that are badly managed, maybe they will not grow at all.

So, my view is simply based on simple economics and I am not an academic at an Ivy League university. I observe what is happening in the world. But simply based on a common man economics, I think India has a good potential and I believe that foreigners will come into the market near the top and that will be the time we will have to sell Indian shares to the foreigners who will rush into India because they think it is the new El Dorado.