Norton Global Asset Management believes India’s Long term growth prospects are better than China’s and can earn its clients above average returns.
The long-term prospects for the Indian economy are looking far better than its BRIC (Brazil, Russia, India and China), counterparts. With all the indicators looking bright, Norton Global Asset Management’s senior analysts are constantly scouring the country for the next big IPO and businesses that are well positioned to take full advantage of the current and forecasted burgeoning economy.
The IMF produced a report in October last year on the world’s economic outlook where it predicted the Indian economy would speed up from a 5.6% pace in 2014 and grow to 6.4% in 2015. The underlying reasons for growth are rising exports and investment. Meanwhile over in, China their growth is predicted to slow slightly, from 7.4% in 2014 down to 7.1% in 2015, this will be a result of slowing credit growth which in turn will slow investment and real estate activity. Although China continues to increase growth at a slightly faster pace than India, the actual performance differential is declining. For the first time in many years, the paths of growth are travelling in opposite directions.
What will drive India’s growth?
50% of India’s 1.2-billion population are under 25 and by 2020, India will have the youngest population on the globe giving it a median age of 29, by comparison China’s median age is 37. This Norton Global Asset Management believe will give India the largest labor force in the world making it the biggest consumer market on the planet.
India has a growing middle class in the region of 245 million which already represents makes it one of the largest consumer markets in the world. This middle class group are well educated, well up on the latest technology and typically affluent are likely to continue the rapid growth in the coming years.
India still has a relatively low penetration of goods and services which gives it a potentially phenomenal growth curve. India’s business sector is
India has a booming business sector with charismatic CEO’s that are progressively expanding overseas, they also have some of the best educational institutions in the world, together with proficient financial organizations. All this Norton Global Asset Management’s senior analyst says “points to significant financial gains for its clients’ portfolios”.