I first heard a presentation about the potential of investing in India about three years ago, and I was mesmerised
India is the world’s largest democracy, and is likely to take over from China as the world’s most populous nation by 2028, according to UN calculations.
India is a young nation
In terms of population demographics, it is a young country, with 65% of the population under the age of 35.
The “average” age of an Indian is 29, compared to around 37 for a Kiwi and 48 for Japan.
This means that they have a broad population base of people in the workforce to support older people, and a huge population of young people in the spending phase of their lives, as opposed to the saving phase of people in their 50’s.
Indians are becoming well educated
Indians are also becoming increasingly well educated.
The number of University graduates (both in India and overseas) is on an exponential trajectory.
In 2014, India had moved into fourth place on the list of countries with the most doctorate educated people in the world (behind the US, Germany and the UK) according to OECD figures.
Not only is the population young, they are well educated and therefore generally speaking, have higher disposable income.
India is a serious economic global player
From an economic perspective, India has emerged as a serious global player over the last decade.
They have had the highest average GDP in the world over the past 5 years, just pipping China at the post, and are also predicted to continue wit the number one position for the next two decades.
Prime Minister Narendra Modi has made uncovering corruption his number one priority and has instituted several sweeping reforms which have had a significant impact, as well as increasing governance in the financial arena (banking, business practice, tax reform).
He is now focussing on the future and trying to redress India’s pollution and environmental issues. His government has introduced welfare schemes for minority populations.
India is a nation on the rise
From an investment perspective, there is money to be made BUT you have to be very careful about HOW you access the Indian market and WHAT you choose to access.
It is still an emerging nation – but the possibilities are so exciting!
Janet Natta is a financial adviser and director of Smart Money Advice, offering investment portfolio construction and management services to clients throughout NZ, as well as comprehensive financial planning advice to assist clients to build and protect wealth to achieve their dreams.
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