Manuel Hinds, the former finance minister of El Salvador explains why of all the BRICS, only India and China are on the rise and what it means for the world economy.
On February 17, The New York Times published the article named “While competitors are treading water, India’s economy is moving forward.” In this article, the author claims: “The Indian stock market is rising alongside with the rise of the rupee. As the result, multinational companies are seeking to expand their projects in the country, or to start new ones. In recent months, economic growth of India caught up with the growth of China”
There are three questions here. Firstly, whether India is growing, and rivals stay behind, is the part of the common international problems affecting the country with a delay? Secondly, if India appears to be in a better position than China, how and why? And thirdly, what measures should be taken to consolidate this advantage?
The Indian economy is showing the signs of recovery. Judging by the statistics, the investors are pulling money out of the assets of Russia and Brazil, and put them into India and China. In the case of India, this process is at an early stage regarding the stock market in the future may apply to investments in other companies that are not present on the market.
Most of international companies have not yet come to India, though they could be. For example, recently the head of General Motors has visited India to inspect the preparations for the export of the cars in Chile. Another famous global company Canadian SunEdison Inc. plans to invest $ 15 billion in India by 2022. This company working in the field of renewable energy and intends to firmly link their activities with India, where electricity producers cannot meet the growing demand.
As the result, the enterprises still can take what works in other parts of the world and “indianize” it. We mean, they can modify the existing business model and other details so that it will work and solve the problem of the Indians and make the country the attractive source for global investors.