Investing in India

Discussion in 'General Trading Discussion' started by SandyM, Dec 23, 2015.

  1. SandyM

    SandyM Well-Known Member

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    I would like to know if anyone has a list of tool and resources for investing in India. Or even better, if someone has already done so and has intimate knowledge of the country. I keep reading about the mega wealth that seems to be in this country, which is at least a type of democracy. I can't help but keep reading about Mukesh Ambani, The Tata Group, and Lakshmi Mittal (I know he's based in the UK though). Plus the various Indian Institutes of Technology seem to produce a lot of people who run decent businesses.

    At the same time, I know that India is described a country full of contradictions and that it also has sections of extreme abject poverty (The documentary 'China vs India: Race to the Top' gets into this). Basically the rural poverty is so bad in some sections that it might hold the country back because many children don't have the nutrients to develop their brains for a successful future, many people are stuck in rural farming poverty situations. By some estimates, there are as many poor people in India as there are the total population of the US. Other accounts say investment is hard because of India's infrastructure. And by all accounts the caste system still has a grip on the country.

    In spite of these criticisms, I think India seems like an amazing country and I would be interesting in investing. For all I know, these criticisms could be biased, and I certainly do not wish to bash this country. I am actually interested to see how you can invest in its future! Does anyone have any experience investing here?
     
  2. baudwalk

    baudwalk Senior Investor

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  3. crimsonghost747

    crimsonghost747 Senior Investor

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    India is a... strange place. There certainly is potential there, the educational system is pretty good and the country, with a huge population, is quickly moving from being a rural patch of land into one of the more powerful countries on the planet. It's becoming a lot more financially stable and people are starting to earn more and work at higher end jobs.

    But it does come with significant risk due to strange government regulations. Seriously... the amount of weird crap in the legislative side is absurd. And I know someone will say it's absurd in western countries too. Well take a complicated western country... like one of the more anal western european bureaucracies... and make that 5x worse and you have the best case scenario in India. :)
     
  4. manoharb

    manoharb Senior Investor

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    I am an Indian Analyst and staying inside India. daily, full time trader. world's no. 7th. best and safest exchange for FII. according to currency formats of GBP, EUR and USD all these created long-term bearish pattern against INR. This is right time to invest in NSE. in next 10 years, Indian Forex reserves will cross, Japanese forex reserves. In 10-15 years, India will be world's 3rd. Largest economy. so, long term prospective are very good and Indian Foreign Policies are well balanced.

    If anybody interested in investing, Invest small amount now, more after EU rate hike and more after June or August2016.
     
  5. anders

    anders Well-Known Member

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    Indian companies? Not even once! But the economy there is ripe for exploiting by other firms based outside the country, if they're able to leverage the operating costs that basing their production and servicing arms there would bring.

    Plus, isn't India facing a massive "brain-drain" in the coming years? Just another reason to give that place a wide berth.
     
  6. SandyM

    SandyM Well-Known Member

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    Thank you for the excellent advice! I saw this trend coming about ten years or so ago, even when people were only obsessed with China. Between the sheer volume of the population and the high education of at least 1/4 of the population (which is the size of America anyway), plus the fact that it's a youthful population, means that there is enormous potential in the region. Japan seemed a bit too homogeneous to me and I never really felt compelled to start there. Thanks for the tips about the rate hikes, that gives us around four months to research and then another four months to get started.
     
  7. crimsonghost747

    crimsonghost747 Senior Investor

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    I would argue that the brain drain has already happened. A lot of the smart, well educated Indians left to work in the fields of science, finance etc. outside of India. But now India is starting to emerge as a leading country in these things. India is pushing themselves forward in the weapons industry, space exploration, finance etc. There is, now more than ever, the possibility of them actually doing these jobs with proper funding for their government, whereas in the past it was pretty much mandatory to leave abroad if they wanted good research facilities.
     
  8. crimsonghost747

    crimsonghost747 Senior Investor

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    Then why didn't you act on it? I hate it when people always say "I saw this coming" because it happened... but in reality you didn't really saw it coming with any clarity because if you did then surely you would have taken advantage of your vision?
     
  9. Corzhens

    Corzhens Senior Investor

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    There are lost of Indians right here in our village and I cannot consider them friends but some are good acquaintances. They are engaged in micro lending activities, lending money to small people and collecting the installments daily. Take note, that's every day collection. As with the investment in India, they say that the Indian economy is volatile and controlled by big corporations - he named some of them like Tata Motors - so small enterprises have a hard time in staying afloat unless it is an affiliate of a big company.
     
  10. petesede

    petesede Guest

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    I rarely venture outside the USA for investing. There are just too many variables and things that I am not an expert about when it comes to investing in a foreign country. If I want to play a country, for me it is better to choose a USA company that has significant exposure there rather than picking an indian company. I don´t know their politics, their oversight or their internal issues.
     

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