Why investing in India and not China?

Why investing in India and not China?

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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