India Investing: How Strong is the growth base of this Emerging Market’s Domestic Consumption Story?

When it comes to the potential of growth in a country with second largest population, investment opportunities can only be outnumbered. India’s population is around 1.3 billion people, and the geographical contrasts come in form of splendid mountain ranges, unending coast lines and plenty fertile plains. There is definitely no shortage of resources; there might be some imbalances creating short-term inflation. And, inflation does hurt while it stays!

But the real puzzle:  Whether the “Indian Growth Story” which is mainly led by domestic consumption is sustainable?

Globally, we are witnessing unclear economic trends, mostly engulfing developed nations. So this is the time to look beyond developed land and start keeping track of growth activity in some of the fastest growing economies in the world. In this write-up I will attempt to bring forward some important facts about Investment Destination India.

More than a bull analysis:  An Attempt to foresee the scope of growth in the Indian Economy……………

 to….be….continued..

Before I post the entire story, you should read these related previous posts:-

(1)Is Indian Growth Story still Intact?

The country’s growth story remains intact. It’s never too late to plunge into the Indian Economy for the domestic as well as foreign investors and mint money for years to come. Read on to find out why.

(2)Why are Emerging Markets key Destinations for Staggering Equity Returns (updated)

Generally, developed markets are considered safe-heavens for stock investments, but returns on equities from such markets may seem subdued to investors tempted by bullish stock trends of emerging markets, particularly India and China. This is the reason why Russia, India, China and Brazil which are the fastest growing markets and continue to remain top investment destinations for savvy investors from Europe and America. Read on to know more:-

(3)Economic Impact of Growing Corruption in Emerging Markets

A problem termed to be hindering growth in developing nations and their ability to come up to the standards of developed economies. Many in Wall Street and other financial dailies point towards inflation and other issues as the major deterrence to the rise of BRICS members. Latest views from world leaders put economic impact of growing corruption in emerging markets at the top of the list. Read more:-

(4)Emerging Growth Wagon- Don’t just watch! Get Onboard

In china inflation is nearing 5%, and that has shot straight from zero in past one year. Conditions in India are much worse where food inflation is completely out of control, gone as high as 18%.  You can blame it all on cyclical pressures that are keeping inflation rates in developing countries significantly higher than developed countries. Find more about investing in emerging markets:-

(5)The Recession that never was! Are you prepared for Economic Depression in the 21st Century?

Deflation, as the term suggests is a fall in demand followed by sharp declines in prices, and not to forget that money supply can remain largely restricted in such scenario. Often we consider only one factor to be associated with deflation i.e. decreased demand, but what follows is even worse. Post link:-