Bullish on India

The Indian growth story has reshaped India in more ways than one, according to a report Inside India, by IIFL, the institutional research arm of India Infoline. Inside India attempts to showcase India’s diversity and its growth centres through 25 in-depth maps covering IT, railways, engineering and many other sectors. A major highlight of the report: India’s growth story has been having a positive impact on smaller towns and cities.

India’s IT offshore model has become one of the most disruptive forces in technology, and several smaller towns, such as Nagpur and Gandhinagar, are emerging as new IT centres, says the report.

India’s gas production is set to triple over the next 4-5 years with the expected commercialisation of a number of new gas fields. Over the next five years, India is expected to add 78 GW (gigawatt) of new generation capacity, more than thrice the capacity added in the preceding years. India is one of the world’s fastest-growing passenger car markets, and an emerging export hub for small cars. Besides, the Indian wireless market is the second-largest in the world, but the growth has been faster in smaller towns compared to the big cities. All this adds up to a unique India story.

“India is not simple,” says Anirudh Dange, Head (Equity Research), IIFL. “The investor has to appreciate the complexity of India.” Over the next decade, the hitherto underdeveloped eastern region will emerge as the next big growth story due to huge investments in automobile manufacturing and minerals and metals production. “Over the next 10 years, the entire eastern region should emerge as a strong economic force,” says Dange.

All this suggests that India is on a strong wicket, and there’s no major reason to worry for investors. With the macro-economic factors expected to show a major improvement over the coming years, many more investing opportunities will arise.

—Clifford Alvares