When it comes to investments, somehow investors tend to overlook India. When people mention India, multitudes of starving people begging in the streets, underdeveloped infrastructure and rural villages come to mind. India, however, is a developing economy with the world’s second largest population. Its economy grew by 7.9% year-on-year in the first three months of 2016 and the GDP annual growth rate had an average of 6.07% from 1951 till 2016. This is very impressive to me.
Also, the long-term growth prospects of the Indian economy are positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. The Indian economy has the potential to become the world’s third largest economy by the next decade, and one of the largest economies by mid-century.
What should one invest in then in India? Well, for a start, its service sectors contributed to 57% of GDP in 2012 to 2013. India has become a major exporter of IT services, Business Process Outsourcing (BPO) services as well as software services. So the next time you think of investing in a single sector, don’t forget India.