India remains an attractive market to invest in. It’s the second most populous country in the world, with more than 1.2 billion people. Of the BRIC countries (Brazil, Russia, India and China), it has the lowest per capita income of $3,200. Some estimate that 37% of the population lives in poverty.
Why should you consider investing in India?
First, the International Monetary Fund (IMF) is forecasting a whopping 49% increase in purchasing power for consumers in India over the next five years. While that’s less than the 66% forecast for Mainland China, it’s almost three times faster than the growth expected in developed countries, such as the United States.
This kind of purchasing power growth will bring more of the population out of poverty and increase the demand for everything from cars to cell phones to computers. It will create a wave of emerging market consumer demand.
And, with the potential for 1 billion people in India connecting to the internet, India’s technology infrastructure will need to grow. Today, 10% of India’s population is connected to the internet. When compared to estimates of 40% for the rest of the world (excluding Asia), India has significant room for growth.Â
So, the developing-market picture for consumer products and technology infrastructure in India warrants a closer look for interested investors. We’ll keep you informed as we identify other investment opportunities.Â
