Globalisation : India, the Super power in making

Target 2025: India, the Global Economic power

Dear friends,
I spent my last weekend attending the 18th Annual conference of Karnataka State Chartered Accountants Association. The theme of the conference was Power of CA-Challenge the potential. The conference revolved around how the profession needs to adapt itself to take utmost advantage of the changing global scenario and provide leadership to the business community in its endeavor.

However, the best part of the conference was the keynote address by Shri Mohandas Pai, CFO, Infosys Technologies. In his impeccable style, Mr. Pai addressed the gathering on Globalisation and its challenges and its impact on India. I would not dwelve much on the other aspects and would confine my article to points that should be of interest to the common Investor.

The world dynamics are changing
The world is shrinking into a global village and the dynamics are changing. US and Europe, which used to rule the world, are now bowing before the developing economies. The opening up of bilateral trade has done wonders to the developing economies and has provided them bigger muscle power. Not only US and European countries are worried about the trade balance with Asian countries, they re also worried on the front that even if the inter-asian countries trade flourishes, it would pose a major challenge to them. China has already proved its mettle and India is fast approaching the big league.

India is Young
Yes friends, more than 70% of India’s population consists of the middle age working people and the younger generation. That means the large population of India, which was once considered as a drag on its growth has finally converted itself into its strength. The young workforce of India will convert India to a global economic super power in the next 20 years. This advantage to countries like china and India is due to the old population in European countries and US. The fertility rate in these countries has fallen sharply and poses a threat to the economies of these countries in long term. These countries will need to source young workforce from countries like India to maintain their economies and will open the gates of wealth for countries like India.

Right skill sets required
Though India has an advantage of large and young population, a significant part of India resides in villages and good education is still a distant dream for a bigger part of the society.
If India has to take utmost advantage of this young generation, it has to invest significantly in providing education to this section so that they can equip themselves with the right skill set to exploit the maximum.
One more thing Mr. Pai pointed out was the contrast between Indian and western farmers. A major part of Indian farmers are poor while the farmers in western countries have a good standard of living. India has one of the highest cultivable lands in the world, still our farmers are poor. It is high time that our farmers are educated about the best way of framings so that they can also in turn add to India’s success.

This is India’s century
The 16 & 17th century belonged to the English, the 18th & 19 th century belonged to the European countries like Germany and the united states. China ruled the 20th century with its robust growth. Now this is the turn of India to become the global economic superpower. So guys, cheer up to be part of India’s success.
The stock markets are considered to be the barometers of the economy and the way Indian markets have grown up in the recent past is the testimony of India’s potential.

37 comments:

Mike said...

Rajesh
good write up.

Anonymous said...

I think you are wrong on two counts - 16th century didn't belong to England, it was dominated by Spain. and 21st.......

Anonymous said...

anonymous
not sure if you are right or rajesh about 16 & 17th , but i can say that 21st century will definitely be of India!

smita said...

the article is thought provoking. To become superpower India needs to educate its future workforce in line with demand for future skill requirements.
Smita

Anonymous said...

Hi Rajesh
Considering today's listing of Jagran Prakash, do you think we should be careful in applying IPO rather than just putting money in any IPO?
Please advice some good IPO which are currently available
Thanks
Ritesh

Anonymous said...

Hi everybody,
I am looking to invest 1 Lac in stock markets.
Could anyone please suggest some good stocks with 1 year time horizon?

Anonymous said...

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Anonymous said...

Hi,
There is flood on internet expressing advancing of India ! But fact is that there is no way India can lead the world. First India never had and would not have a responsible government . Indian democracy is inferior to western systems. There is no equality in India.Therefore some have opportunities some do not have . Education system of India is inferior and in a mess . Young generation of India is not as hardworking as required . In India people do not have inclination towards hardwork or innovation. List would be very long .To cut short the story the achievements of India are far below than a country of that size.That is the reason neighbouring countries of India like Pak , Bdesh etc do not care much about India.
Now come to so called shining india ! It is like selling your youth for fraction of rupees in call centre . Since India is selling everything e.g Maruti , NTPC, ONGC etc so money is coming n India. India is not producing anything . USA took from where Britishers left !
Because west has lower birth rate so Indians would go there is nothing but negative development for India. India must have capabiity to enter in tough conditions. I hope a medium income country status for India having lot of internal conflicts and anomalies.
The only good thing in India (and that is why it is still survived ) is due to freedom in chosing your job.
In general India is a perfect example of a banana country , a congregation of coward and hypocratic hindus.

Desi , France

Anonymous said...

The above comment clearly shows the frustration in the minds of western countries towards the rising of India. Desi , you have got a wrong picture of India. Come here and see the change!

jude@nobshyip said...

Would you like to link up as well since you've left a comment on our blog?

:)

Jude

vicky said...

Looks like desi has got some bad experience with India. His comments smells of hatred.
But nonetheless, some of points are relevant like corruption and lack of education facilities in India. But Investment guru has already pointed this out in his post. So why such a hue and cry ?
I personally belive that India may not lead the world but will definitely be a power to reckon
Jai Hind !!

Anonymous said...

I think desi is not aware that Indians are the backbone of the countries like US and england!! Indians have a inherent capability of enterpreneurship and you can find leading Indians in almost all parts of western countries.

rahul said...

Hi Rajesh
I am holding 50 shares of Jagran bought @300. The stock has fallen to 260. Kindly advice what to do ?
thanks
rahul

lucky said...

hello sir

there is no investment idea in 2006 till now. what it will come long long wait, and when u starts your newsletter pls tell

i earlier ask the same
pls reply.

Anonymous said...

1) Indian people who are at top around the world has nothing to do with India . Do not make the grave mistake of counting them among common Indians .(Sorry if hurts you!). It will not help main India if some Indian is CEO of Vodafone or some other company. System in USA or Europe is not corrupt like India so that if an Indian is at top will help India in some way.

2) No body in UK or USA cares about India . Same is the situations around the other developed Europian country. What India earns through IT , much more country like France earnS through tourisms.There is no point of thinking that they would care India or they are afraid of India in any way.You know English good for you .Neither German nor France etc care either English or so called English knowing people.

3) Do not behave like 'Empty vessel sounds Much ' . I call it hypocracy . I have seen India many times . Developing few big buildings in Mumbai or Hyderabad or Delhi does not prove India is changing or India is going to become superpower etc. I do not see any possiblity ( I may say ..beyond capacity of India government) to have similar infrastructures in Lucknow , Jaipur , Kanpur , Bhopal etc.

4) There is much talking on corruption in India but no work at all ! This is not the attribute of a rising nation .It is a clear case of BANANA nation. Political system is not willing to address this problem . Corruption is everywhere but they have counter system also. You can not touch a person here in Europe ! I did not find any youth breaking the glasses of Buse or shouting at others . This is called culture.

So what is there in India no money (it is not a big sin) and no culture also .So what do you have ?

desi

Anonymous said...

Learn the comments in right perspective . Learn analysing things . Develop logical ideas .The great point is to avoid taking things personally .
No matter how big USA or Europe is it is not my country ! Since India is my country so I should accept Indian shit is also not a good strategy. Because India has started building big roads and earning few bucks in IT does not qualify it for Nirvana. India is the greatest democracy on earth is meaningless topic.
To become a great nation some traits are required.

1)Responsible government --- India is failed on this issue

2)Responsible and Dynamic system--- You all guys know the truth ...what to say

3)Equal Opportunity--- You know it better .

4)Human Rights--- How a government establishment can treat a common citizen roughly ?...

List will be too long ....

The greatest hypocracy ...

When i comes to development , government ..answer is ..hey ..see America ..they took 200 years even more for present status ..we are just new nation.... every Indian (with Jaihind title ) is convinced..but when it will come to culture.. we are the oldest civilization ..we r the greatest old nation .... equally well...

Rajesh Soni said...

Dear Friends,
I think the discussion on this board on my post has deviated from the orginal purpose of the post.
This post is not meant to hurt feelings of any person or nation. This is a fact that today US is growing at a rate of 4% and India is growing at a rate of 8% and hence in the coming years the prospects of India looks bright. What I wanted to put forth in my post was that if, even with so many limitations to our growth like education facilities, farming revolution and infrastructure, we are growing at 8%, you can imagine India's grwoth rate if these issues are addressed. Us and some eurpoean countries are no doubt developed economies, but there are always cycles of booms and depressions and no country is an exception to it. Let's take this in positive spirit and avoid being sarcastic to any person or nation.

Laks said...

I guess Desi u need to be updated about the current position and situation of India.....We dont have the service sector just like that,we defenitly have the ability to deliver quality in whatever we do..India defenitly doesnt face any threat from any country cos India is strong in its intelligence and rich in Culture,just to correct you there is no country without culture it just how strong and rich it is and India tops the list with diversifed culture.coming back to the point we just dont have call centers and BPO's where in Indians are involved in Stratergic roles this clearly states the potential of the people here and also you would get to see the richest people in the US are Indians,please watch out before you make any false comments about India,I agree there are certain drawbacks like corruption,poverty etc but we are still developing despite all the hurdles..I think you need to start looking at the positive side of the country than just condeming it.

cheers!!!

Anonymous said...

Yeah Mr.Soni ,
You are right .Things are deviating from the aim.
Points which I raised have nothing to do with a common Indian . They are more related with govenment and higher levels.
But general public is emotional and patriotic , so they are taking things pesonally .
A lot of effort is required for India as a country to achieve some meaningful goal. India needs to change as a country of VERY HARD WORKING people.

desi

abhijeet said...

Hello mr. soni,
In these markets do u think there is any particular stock which can be taken before the budget is announced......from very short term investing point of view.....in case if you think 0f something.....

Anonymous said...

Dear Mr.Soni
I have been alloted 50 shares of GVK power. Shares will be listed tomorrow.I will appreciate your advice regarding sell or hold.
Regards,
M R Kale

Anonymous said...

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spi_spot said...

Rajesh,

Any updates on Narmada Chematur after its merger with GNFC?

What is your take Hold / Sell.

I appreciate your valuable guidance on this.

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Anonymous said...

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Sanchita said...

Hi,

We are a muic production company and are looking for investment of around 52 lakhs for our new music album. Any idea if you could help in finding someone who might be interested in investing in the entertainment industry.

Anonymous said...

hey rajesh sir....why no news from ur side,hope everything is very well....
sir budget came and went but no new news and no new blog....we want them sir....
as soon as u get free do tell sthng to us...ur blogs are a treat for eyes....

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ali said...

rajesh sir what happened???????
where are you
no comments sir
i pray and hope everything is good...

Rajesh Soni said...

Dear friends,
Thanks for your enquiries. I am fine and doing well. However unable to devote time to the blog. Just wanted to share with all of you that I would be leaving Bangalore in few days (will right a post on this later on my 5 years of stay in Bangalore!)
Would soon resume posts on Investments.
Thanks to all for their patience and look forward to your continued patronage to the blog.

ali said...

Thank god sir that you are very well and very fine.Will eagerly wait for your yet another exciting blog.Rather a tale of a passing moment of 5 small years,which would hav passed just like that.........

Ali

Anonymous said...

Hi Rajesh
Good to hear that you are doing well. where are you moving?
Wish you all the best
Aditya

Anonymous said...

Hi rajesh
Please advice on the recently listed IPO's . Most of them have listed at discount creating problems for retail investor .
Should we hold or book losses?

mahesh from bhopal said...

Dear Rajesh,
As per your article the sensex was supposed to touch 11000 and it is very near to this level. please give further guidance on the sensex target for next two months.
Do you see a fall in index due to profit booking in march (being year end).
we have not seen any investment idea from the guru in this year. I hope that soon you will get time to update your blog and wish you all success in your life.

mahesh
bhopal

Anonymous said...

Hmm..Interesting comments. I liked the points raised by Desi. May be if we start taking up the issues and concerns more seriously then we can grow at much faster rate. Problem with us is we get emotional and stop flow to the brain. Stand up for your rights and stop being taken for granted.
Jai Hind
Nitin

Anonymous said...

What's happening from ur side? No write up's past a month.

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