Fundamental analysis start with a top down approach. Top down approach means analysis the economy first later a particular sector and at the end a particular financial instrument say it an equity stock or a derivative. So I decided to write on Indian Economy.
India is the economy world is looking forward to. India has many untapped opportunities in various sectors.
Indian Economic Growth 1985 – 2005 :
*Note : Currently India is a trillion dollar economy! (Source)
What leaders have to say about India:
BRIC Report, Goldman Sachs “ I have never seen India so dynamic, vibrant and full of business opportunities”. – Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005 “ We came to India for the costs, stayed for the quality and are now investing for innovation”. John Redwood Economic Competitiveness Policy Group, UK “ India is now truly a land of opportunity”. Jack Welch General Electric “ India is a developed country as far as intellectual capital is concerned”. Peter Loescher President and Chief Executive Siemens By 2032, India will be among the three largest economies in the world. Why India? – Quote Unquote Travyn Rhall, ACNielsen “ The Indian market has two core advantages – an increasing presence of multinationals and an upswing in the IT exports”. Craig Barrett Intel Corporation “ India has evolved into one of the world’s leading technology centers“. Mr Paul de Voijs Managing Director Volvo Car India “ India is a very exciting market and the luxury car segment is growing exponentially here”.
Some things you might not know about India :
- India is one of only three countries that makes supercomputers (the US and Japan are the other two).
- India is one of six countries that launches satellites.
- The Bombay stock exchange lists more than 6,000 companies. Only the NYSE has more.
- Eight Indian companies are listed on the NYSE; three on the NASDAQ.
- By volume of pills produced, the Indian pharmaceutical industry is the world’s second largest after China.
- India has the second largest community of software developers, after the U.S.
- India has the second largest network of paved highways, after the U.S.
- India is the world’s largest producer of milk, and among the top five producers of sugar, cotton, tea, coffee, spices, rubber, silk, and fish.
- 100 of the Fortune 500 companies have R&D facilities in India. (From the PPT)
Check out this interesting PPT :
As predicted by Goldman Sachs, the Global Investment Bank, by 2035 India would be the third largest economy of the world just after US and China. It will grow to 60% of size of the US economy. This booming economy of today has to pass through many phases before it can achieve the current milestone of 9% GDP.
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