Larry Edelson discusses six reasons why he thinks investing in India could prove successful. Mr. Edelson takes a closer look at how the rise of India can benefit natural resource markets.
India is one of the up and coming economies on the planet and holds tremendous profit potential for investors. It&39;s growing at a 9% rate, ten times faster than the U.S. and only a couple of percentage points behind China. The Indian economy is not merely outgrowing the U.S. by leaps and bounds; it&39;s also at the very epicenter of the booming natural resource markets.
According to Edelson, there are six reasons why investing in India could prove to be a highly lucrative proposition.
1. India has the fastest-growing population in the world, expanding at the rate of approximately 16 million per year. At this rate, India&39;s population will exceed 1.4 billion people and be larger than China&39;s by 2030. Per-capita income in India has risen steadily over the past five years, from $285 to currently around $550. Some studies suggest that India&39;s per-capita income can eventually reach six times that of China.
2. Government investment in the country&39;s infrastructure is soaring, jumping 9.9% from 2007. Auto sales are moving along at a 17% growth rate. Airline passenger traffic is expected to more than triple over the next five years from 14 million per annum to around 50 million. Over the next four years, by 2012, the government plans on spending a total of $500 billion to build out and improve India&39;s infrastructure.
3. Manufacturing now accounts for almost 30% of India&39;s economy. When most analysts and investors think of India, they think of agriculture, textiles, and usually its famed information technology service industry, which handles the outsourcing for hundreds of U.S.-based computer hardware and software manufacturers and telecoms. But in fact, the largest employer in India is the manufacturing sector, which employs more than 100 million people, more than 25% of the total employed in India, and which is growing at a very healthy 8.8% rate.
4. Corporate earnings in India are growing at an astounding 35% annual rate. The 30 largest companies in the Mumbai Sensex index increased their earnings at an incredible 35% in their first quarter of this year, blowing away estimates. Revenues jumped 20%.
5. Private equity investors are now putting more money in India than in China. Nearly $20 billion in private equity poured into India in 2007, a 156% jump versus 2006, and 34% more than went into China in 2007.
6. The Indian middle class is 330 million and growing. They are spending their newly earned money, ramping up retail sales growth that should average 13% or more for the next several years.
Natural resources also benefit from the rise of India.
"India&39;s steel industry expects growth of about 8% a year as demand nearly doubles from the current level of 36 million tons of steel per year to 65 million tons by 2012. Its copper consumption stands at about 2.5% of world consumption and even less than China&39;s per capita consumption. But India has already had to rely on copper imports to meet demand. As India&39;s emerging middle class rises, the demand for copper could cause prices to soar. Also, coal consumption is expected to increase 20% in just the next two years. India&39;s aluminum consumption can be expected to climb sharply. And let&39;s not forget oil demand. Oil provides about 30% of India&39;s total energy consumption, and the country&39;s net oil imports already run at more than 1.4 million barrels a day. Oil consumption in India is expected to rise sharply, effectively doubling over the next two years to 2.8 million barrels a day," Edelson states.
To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspxSix-Reasons-to-Invest-in-India-1855
About Larry Edelson and Money and Markets
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research&39;s customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors.
Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com
Mr. Edelson holds a B.A. degree from Columbia University.
Money and Markets (http://www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit http://www.moneyandmarkets.com.
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