India, This Is Why We Love You.
This is further confirmation of what we learned during our recent visit to India.http://cheapclix.net/inetglobal-is-in-mumbai-bombay-india/
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The Sovereign Society Offshore A-Letter
Monday, April 12, 2010
What India’s Got that China Doesn’t
It’s Simple Really…
“Democracy,” he answered simply.
At first I made a face. That’s it? I thought…That’s all this kid’s got?
Jay was originally born in India. He grew up there through his teenage years. Then – like so many others – he crossed the Ocean and came looking for a job. He’s a software engineer at Motorola these days, but his brokerage license testifies to some financial pedigree.
So when I asked him what makes India such a better emerging market play, I expected something a little more substantial. But could it really be that simple?
“India is the largest democracy in the world (1.2 billion people),” says Dalal Street Insider Ashish Advani, “And it’s a sea of tranquility compared to some of parts of Asia (including Sri Lanka, Pakistan, Nepal, Burma, China, Afghanistan, etc).
“It’s also time-tested with India having gaining independence from Britain in 1947 (62 years). Since then, India has held regular elections (too many if I had a say) and each time the torch of power has passed hands without incident.
“There has never been a threat to the democracy in that whole time. No military coups or dictators have even attempted to seize control. So if there is a safe, stable country to invest in which has full respect for the law, it’s India.
“India is a volatile market, but your capital is safe and it never under any serious confiscation threat. The same cannot be said about even China.”
The Power of Honesty & Fair Play
Despite what we might believe at our most cynical, this history of fair and honest behavior has actually greatly benefited the Indian government and its economy as a whole.
As Ashish mentioned above, there’s never really been a challenge to the government’s power.
And since winning an almost-absolute majority in the elections again last year, the Pro-Business Congress party has laid a clear path to real, sustainable growth.
Indians as a whole seem to be following suit…
Entrepreneurs and spenders are coming out of the woodwork…car sales are up over 25% just in the last year. And the bad monsoon season has combined with the country’s acute situation of rapidly-growing demand, leading to a food-fueled inflation unlike anything America’s seen in our lifetime.
These, dear friends, are the first throes of the new consumer. The stifled yawn of an awakening giant.
Their closest competition; the crowd favorites in China, have a number of vague and difficult hurdles to clear before they’ll ever reach the same level.
For example; China’s industrialized export-dependence is broken as long as American and European demand remains at these levels. Meanwhile, India’s significant service and agricultural sectors make it more adaptive to a shifting environment, and more prepared to handle the basic needs of its own people (leading to minimal export dependence in a country of over a billion people).
And then there’s Jay’s point. Democracy. Cold and hard, that one. The Chinese have stretched the idea of communism to its very limits – incorporating capitalist measures often only where it’s necessary to keep the population at ease.
It won’t be another fall of the Soviet Union, that’s for certain…but the mere fact of democracy gives India an appreciable leg-up on China, regardless of what they’re telling you…
Yours in Personal Sovereignty,
Matthew Collins
A-Letter Editor
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PLEASE BE PATIENT, INDIA. THE WORLD IS LEARNING ABOUT YOU, AND WE ARE COMING SOON!
www.harmony.inetglobal.com/rep
iNetGlobal Reps Diane and Ken Haugen at Gateway to India, Downtown Mumbai
BLOGGER’S NOTE: I would add, “What’s India Got That the USA Doesn’t”
ONE WORD ANSWER: DEMOCRACY
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