India has recently caught my attention as a very interesting region of the world that is growing fast and building fast. Let me be clear, though, that I am not an expert about India. What I am about to write are all the things I've learned doing some research and talking with friends and users online who have been there or live there.
The chart I've attached here shows the INDA ETF, which is one of the few India ETFs in equity markets. I also find that interesting - it's not really easy to find an ETF or fund that gets you exposure to India firms. So keep that in mind while reading or looking at my chart.
What public India stocks do you know? Are there any public India stocks or ETFs that you think I'm missing?
I am not going to be buying anything right away, but I do want to hear any thoughts from those who are reading.
Here are some recent thoughts I've had:
1. A few years ago, Jeff Bezos said the following about India: "“I predict that the 21st century is going to be the Indian century. The dynamism, the energy… everywhere I go here, I meet people who are working in self-improvement and growth."
Amazon is currently in the process of investing $1+ billion into India to bring new marketplaces and manufacturers online.
2. Venture capital in India hit a record at $63 billion. And it seems to be growing.
3. India has a record number of startups valued at $1+ billion. India was never known as a startup hub until recently. I think what's changed here is the number of US investors who are starting to take risks in the region. Perhaps this is a "rotation" from other countries that dominated recent venture capital cycles, especially in Asia, to places like India that have no received the same level of attention.
4. Here's an example, India has a GDP per capita of 1,900. China has a GDP per capita of 10,500 and Brazil has a GDP per capita of 6,700. All these regions of the world are growing and to be an optimist, you want to see the world continue to succeed, build, and improve. Could India start to grow as fast as these other countries? Time will tell, but it does seem like a question worth asking.
Thanks for reading!
Please reply if you have any thoughts or ideas on how to play it.
I agree with all the points you've made and, the technicals on the charts look promising. Seems to me that many tech companies have moved their customer support to India (from personal experience). I know they are also a world leader in drug manufacturing and currently export many college grads including Doctors to many countries around the world including the US. And, they have Tata Motors, LOL... Here's an article you may be interested in: www2.deloitte.com/us/en/insights/economy/asia-pacific/india-economic-outlook.html
Interesting man. Looking at your point on GDP per capita and venture capitalism shifting a portion of its attention to India, do you think India can compete cost-wise for the production of cheap goods with ASEAN countries?
I really like Bezos's point about how many Indians seem driven by self-improvement. It's certainly good for their growing business environment.
scheplick
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@CViewsTH, It seems possible. I've been reading more and more about their manufacturing base and all the investment they're doing there. Anecdotally I see more and more "Made in India" tags across retail.
veryfid
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Hi, thanks for sharing. It certainly looks like something is brewing.
fringe_chartist
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Demographics of India, particularly age distribution are very good as well. For example most people are obsessed with financials in China, but roughly 27% of people in China are 25 or younger. Compare that to roughly 50% of India being 25 or younger. There's a lot less burden of the older population on the younger generation in India, much more people available to take care of the elderly and sick for example, which means a larger distribution of the working class suited towards production. This overall picture generally means a healthy and happier population, and despite India being a "poor" country I think the next few decades favors India quite well in terms of demographics.
keronn
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i dont have any thoughts or ideas on how to play it but. but thanks for sharing this information with us . but to be honest they do look like the next big thing
Tez8
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Agreed, India will experience strong growth over the next couple of decades. However, it is not without risk. It will need to get passed its strongly protectionist tendencies, to tap foreign capital and gain better access to foreign technologies.