Why investing in India and not China?
On: April 30, 2016
in News
China has been the number one investment destination for Western companies.
We have been asking why not India? India is a country with a vibrant democracy, a country with a working legal system and a country with the largest number of people who speak and understand English.
With the “Make in India”-program India wants international companies to invest and manufacture in the country. And it seems to work. In 2015 India was the world’s top destination for FDI with US$ 63 billion worth of investments.
To our mind India will overtake China in the next decennium.
- China has been developing thanks to a) huge investments in infrastructure and real estate and b) export of a wide range of goods facilitated by cheap labour and cheap bank loans. Today there is an over-capacity, export is slowing down, wages are increasing and the population is aging (due to the one-child-policy).
- India’s economy is growing because of domestic consumption by a young and growing middle-class. This is a bottom-up growth whereas in China we speak about a top-to-bottom growth.
- India succeeds to attract massive FDI’s (foreign direct investments) thanks to an open and liberal economy and a stable business environment.
India is the only country that will grow considerably and consistently for many more years offering tremendous business opportunities.
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