Growing Importance of India For Investors (ie, India is the next Essay

Growing Importance of India For Investors (ie, India is the next China) - Essay Example The economic reforms introduced in early 1990s have boosted the economy’s growth. Tariff barriers were brought down. Foreign players could enter and thus the private firms had to compete with the best. Exports rose up. Indian firms are rapidly becoming global like Bharti Airtel has entered African market. Unlike China, India’s growth cannot be attributed to just the public sector. There are about 45m entrepreneurs in India. India’s informal sector is also doing well. Indian businesses majorly cater to the need of their domestic consumers and also export various services. Indian firms successfully satisfy the needs of money conscious customers in India who love low priced goods. Tata Filters for example manufactures a water filter that can provide safe drinking water at a meager charge of rupees 30 a month. Indian firms are coming up with new products as well as new business models. HCL technologies improve the IT system of their clients on the condition that they will charge only if their clients gain. Moon B. Shin of LG electronics sees immense opportunity in the Indian market. They are manufacturing low priced goods and goods suited to the liking of Indians. The infrastructure in India is poor. Roads are bad and traffic conditions do not depict a rosy picture either. Power shortage is another problem. McKinsey predicts that Indian growth will be five fold in the next 20 years. India will have to spend $1.2trillion on infrastructure in future. India lacks in skilled workforce. There are only 16 Indian Institute of technology in India. Universities do not impart useful knowledge and companies have to spend a lot for their training. India’s adult literacy rate is 66% compared to 99% of China. Corruption exists everywhere. Instability in the form of Naxalite movement is affecting mining and logging firms. Populism whereby politicians discourage businesses for their own interests is a major obstruction to growth. The government is making