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Started by : Rashmi Patil, Financial services   08 20 2010 12:43:50 +0000
Industry : Hedge Funds/VCs/Private EquityFunctional Area : India(Markets)
Activity:  45 views;  last activity : 09 01 2010 08:27:51 +0000

Many foreign institutional investors are sceptic about investing in India, there many things that are pegging these investors back are like corruption, bureaucracy and India's infrastructure woes, even higher valuations is making it all the more difficult. So, a common question asked by foreign investors, Why should I invest in India? what are your answers or Ideas for this question....

 
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1 2 3 4 5
1 Investing here creates longterm wealth
2 Rising Future Prospects
3 Corruption is a universal phenomenon
4 idea
5 Feel comfortable
6 Promising Economy with Efficient Markets
7 Don't Invest in India

Investing here creates longterm wealth

idea posted by Rashmi Patil Financial services

Here I would like to quote an example and then explain it.  A case in point is Maruti Suzuki’s stock performance since the time of its listing compared with that of its Japanese parent Suzuki. Maruti got listed in 2003 and has outperformed Suzuki by over 11 times. Maruti has been the biggest value creator for Suzuki. You should invest in India only if you want to make serious money. Investing in India makes sense as it will create long term wealth for one.

Would like to know others ideas here.........

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Corruption, Red-tapism, Bureaucratic inefficiency and pathetic infrastucture were already there when Phylips, Suzuki, Honda, LG, Samsung and many others set up shop here.Question is `Why these Cos are still carrying on`?  

Indian workers may not be as skillful, as knowledgeable and as techno  savvy as their counterparts elsewhere on this globe but indians put SUOL into the very fabric of the Co. and make it a living institution beyond the ambit of Co. Balance-Sheet

 

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Hi Rashmi, It is true that Maruti has been more successful than Suzuki. We need to Ponder at the IMP Facts. I'm not sure but i think the Gandhi Family has a Major Stake in it. One dosen't have to be a Genius to see things. If You have the Political Clout like the Gandhi Family, they will continue to do gain huge profits.

Other example: Reliance, Openly Flouting Norms, NO Questions Asked?

Our Companies TEACH the foreign Manufacturers how to Make Millions & Billions by giving the Customer less and Less.

W Indians Pay Double the Price of everything from what people in US or other countries are paying. Petroluem, Cell phones etc...

 

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Rising Future Prospects

idea posted by Vipin Bhasin Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.

Rashmi you have good question. But i am not agree on the point that FIIs or DIIs have any thinking about Indian corruption or bureaucracy. They earned well and earning well from investing in India than any other market in world. We have seen that Indian market outperformed as compared to any other market in world. They are investing in rising economy because everyone have an idea about our future prospect.

Indian IT,Banking,NBFCs,Pharma and oil sector performed well as compare to developed countries. So they(FIIs) are behaving like a business men than an investors More Investment More Income. Our policies also helps them to encourage to invest in India.

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I accept the points posted this side.

Thanks for the referral Mr. Vipin Bhasin.

 

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the trained master will better play the fundamentals as compared with a learner in fundamentals.  they know well about the fouls and holes in the game.  So they can well play the game by outrighting the competitor.  A FII from developed economy is a well trained master, he seen all the fundamentals, he seen the development, he can predict the future of developing economy with knowledge of historical practices in the developed countries and identify the lapses, wrong steps everything at developing stage.  So while playing at developing stage again he will never commit that mistake again can play safely, beat the existing in house players and outperform the market by his technology perceptions.  So FII are investing safely in the developing economy the India.  There is nothing great about out performance of indian market vis-a-vis world market.  As it is in developing stage by its natural state of economy it grow better.

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Corruption is a universal phenomenon

idea posted by kanukurthy sudershanrao Operations Manager, Andhra Bank

If any foreign investor says he will not invest in India due to corruption, then ask him how made his millions.  Corruption is a universal phenomenon it is prevalent in all over the world the percentage differs thats all

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idea posted by Soorain Vahie Freelancer, Consulting

A survey conducted by JP Morgan Asset Management, in association with ValueNotes, indicates global economy recovery, driven confidence across the board, supported by a sustained confidence in the domestic economy. As per the survey, 56 per cent of retail investors expect an  income  increase  and their confidence continued to be the high. Many of the corporate treasuries view GDP growth meeting or exceeding expectations as the biggest positive economic indicator, while there was no clear consensus among investors and advisors. The report also said that  35 per cent of retail investors and 48 per cent of companies consider inflation the most negative economic indicator in India, Some 37 per cent of advisors view the high government borrowings/fiscal deficit with concern.

Then again there are  possives;  India is now the fourth largest economy  in terms of Purchasing Power after USA, China and Japan and one of the fastest growing economy of the world.. It offers tremendousuntapped, business untapped opportunities in many growing sectors. These positives will lure manty investors.  

 

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Feel comfortable

idea posted by Azhar Kazmi Professor, King Fahd University of Petroleum & Minerals

One might just feel  more comfortable investing in one's own country. That could be within the laws and above-board, funds are accessible easily, familiarity is there with the investing entity, and may have less hassles at the time of withdrawal.  

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Promising Economy with Efficient Markets

idea posted by Sridhar K CEO/MD/Director, eFIN Services India Private Ltd. (PowerMF

The Economic growth promise that India holds backed with history of Economic Growth over the last few years, including during the years of global meltdown is very hard for any one to ignore.

Add to this, the Indian Equity Market Mechanism, which can boast to be one of the best in the World. Be it the 100% electronic delivery, T+2 Settlement, Risk Management Systems etc. In fact, India scores ahead of even markets like US when it comes to Order Matching markets against Market Making mechanism followed.This is backed efficiently by Banking System which withstood the international Banking Crisis recently.

Yes, there are areas which needs to be addressed. Be it corruption or political will in certain areas like FDI in retail and insurance. In spite of these shortcomings, it is still the most promising economy with very efficient banking and securities market.

One will be ignoring this market only at his own peril.

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Don't Invest in India

idea posted by Sujeet Vishwakarma Managing Director, RCA Group

Yups.. just donot invest in India..

try working your funds in some more fertile economies..

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