Where to invest money- is really a serious question for the companies and the individuals alike. Naturally, we look for the places from where we can make highest amount of profit from our investment and according to this factor, the attractiveness of a country is considered in the international market. India's commerce minister Ashwani Kumar told US investors in New York that foreign investors can get highest return for their investment in India. He informed the investors that India was eager to have huge expansion in manufacturing, infrastructure and food processing. Mr. Kumar said that automobiles, auto-components and telecommunications are attractive sectors in which the investors could invest in India. He also stated the Indian government was trying for having 10% economic growth. According to Mr. Kumar, the foreign investors should invest India before it is too late and they lose the golden opportunity of getting the highest return for their investment in the world.
There is no doubt that India is a very attractive market for foreign investors but the reality is that compared to China, India is still far behind in terms of attracting foreign investment. Attracting FDI (foreign direct investment) in the manufacturing sector to create thousands of jobs is the main challenge for Indian government now. So, it is natural that Ashwani Kumar tried to promote the India in USA. However, I feel that Indian government should focus more on investing in infrastructure development like improving transportation system and generate more electricity and finally ensure development for all parts of the country. Then, Indian ministers will not need to go to USA to attract investors. Instead, the investors will flock to India like they have done in China.
What is your view about it? Am I right?
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That's an interesting that I think is accurate. I would add that not only do investors want high returns, they want safe investments. If high returns were the only incentive to consider in investing, every security guard that could get hired would flock to Iraq where they can likely make many times their current salary.
There are concerns that India does not present a safe investing environment, considering the appeal of the Naxilites, in some quarters. Also, The Economist has voiced its uncertainty as to whether or not the Indian government can sustain its current economic liberalization, threatened by those who would institute more "populist" agendas.
All in all, I think you are right to argue for infrastructural development. Of course, this is much easier for us to debate on the sidelines than it is to institute. That said, I believe India does have a bright future, but I don't know if I would sink my money into it quite yet.
Posted by: Christopher Cassidy | May 18, 2006 12:02 PM | Permalink to Comment