URL: http://indiapost.com/article/techbiz/1267/
India’s growth across many sectors has triggered the attention of many investors across the world. In a developing nation with a population over one billion, like China, investors want to jump in and see how they can make India a useful resource for business, and wish to help India grow into a fully developed nation. Part of India’s attractiveness is its education system which produces millions of students with a sophisticated education, and also its purchasing power parity, which allows for a lower wage rate. This article talks about general economic growth across India, and how financial services are becoming more important to India’s growth.
Mumbai, a rapidly growing city in Northern India, is looking to be a large international financial center. Though India currently purchases around $15 billion in financial services annually, the minister wishes to make India a leader in providing financial services as well. The finance minister noted that the stock market movements in India have been doing significantly better than the Nasdaq or Dow Jones. He mentions also that market capitalization in the Bombay Stock Exchange exceeds the aggregate deposits in the banking system.
The Indian securities markets are not only growing rapidly, but are also heavily regulated. According to the finance minister, they are amongst the best regulated markets in the world. He also notes that the financial instruments and markets use the latest technology. He points out that there are winners and losers with the movements towards independent financial markets. New companies willing to adapt to competition and improve efficiencies are winners, whereas family-owned businesses that opposed liberalization have lost. Sectors that have been privatized and thrown into competition such as telecommunications, information technology, banking, and insurance have gained tremendously.
India is here to stay in the global competitive scope of business. The finance minister reassures us that India is now governed by law, is a democracy, and is more open to foreign investment than ever. With this growth, India can make more capital investments on infrastructure and address issues such as disease, poverty, and ignorance.
This is an interesting article because India is completely changing the nature of its business environment. Ever since the move to liberalization and privatization, tremendous gains have been seen and India now has a bolstering middle class with white-collar jobs that have increasingly been in the financial and technology sector. Just like China, or even the USA before it was fully developed, India is taking steps to become more competitive and is doing so to try to address issues that have brought it down in the past. It will continue to grow, and soon enough, be one of the leading nations of the world.
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4 comments:
India is certainly an ever-increasing important world market. What the implications for the IT infrastructure in India. Historically, once you are at the edge of any city, the telecommunications environment is virtually non-existent. What role do you see the government playing? private sector?
Ajai, I agree with you that India is starting to open up and that there is a lot of room for growth. India is becoming more liberalized, even more so than China, in terms of its financial markets as well as its banking and finance industry. You are seeing more foreign banks such as HSBC and Citibank, appearing in India, whereas in China it is still more state controlled and limited to joint ventures. Therefore India can benefit from open markets and a strong financial system. Citizens can benefit from improved financial services from banking related products such as taking out loans, customer deposits, to making purchases by credit cards.
India is going to be the place for service in the future I think. Liked the article and you gave a lot of good insight.
I'm sure that India will be a one of the biggest market in the near future. India's quasi-official language is English, and I think this has been attracting company to invest too a lot.
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