It’s Happening Right Now: The Rebirth of India

It’s Happening Right Now: The Rebirth of India

 

 Economic liberalisation of 1991 freed Indian companies of bureaucratic hassles.

The reforms opened the door to foreign markets.

They brought in a flood of foreign capital and technology.

They literally paved the way for India’s software sector. And gave birth to some of the biggest wealth creators like Infosys and Tata Consultancy Services (TCS).

Just one change could create so much wealth.

So, imagine the kind of wealth that could be created if such changes happen in at least five areas simultaneously.

I am talking about changes like…

 

Urbanisation

Some estimates suggest that 30 Indians move from a rural to an urban area every minute. But urbanization is also about smaller towns and cities getting urban infrastructure, boosting urban consumption trends.

Privatisation  

In a landmark decision in 2018, Indian private sector companies have been allowed to participate in defence manufacturing in a big way. This alone is expected to be an opportunity of over US$ 20 billion. Add to this, several billion dollars of foreign capital and private sector capital are coming into sectors like aviation, mining, banking and energy.

 

Formalisation

With the introduction of GST, the number of enterprises paying indirect taxes has gone up by 3.4 million, an increase of 50%. The bulk of the new entrants are small enterprises and intermediaries, which entered the formal economy.

 

Financialisation

Nearly two out of every three bank accounts opened in the world between 2014 and 2017, were opened in India. Four-fifths of Indian adults had bank accounts in 2017, compared with just 53% in 2014.

Digitisation

In 2017, the IMF lauded just two countries for the efforts in digitisation. India is one of them. Aadhaar, which covers over 89% of the population, cane be a gamechanger. The use of biometric technology to identify and authenticate individuals can reduce leakages and improve coverage of social programs.

As you see, these are not merely economic jargons. Rather, they are irreversible trends that are already paving a long runway for Indian companies.

Recognising these irreversible trends could ensure that you buy stocks that are poised to make the most of it.

Living through, what I call the Rebirth of India, would eventually entitle millions of Indian investors to their own chronological lottery.

And allow them to take the first step toward the investing opportunity of their lifetime.

Like how ordinary Japanese investors saw wealth creation in stock markets over a quarter of a century.

But Japan is not the only country to witness such a rebirth.

There have been several such instances in the past 50 years.

In each of these economic rebirths, businesses flourished and created massive wealth for their shareholders.

 

How You Can Profit from the Rebirth of India

 

 

Rebirth of India presents a once-in a lifetime opportunity to create real wealth in stocks, without taking undue risks.

Stocks of companies that ride the irreversible trends in India, will receive a big shot in the arm in coming years.

They could see their earnings multiply not just because of improved efficiency, better products or competitive pricing.

But also because of several economic, regulatory, and demographic changes acting in their favour.

Even if these companies just manage to keep up with the pace of change in India and retain their profitability, their earnings could still grow exponentially.

So, the Sensex may go up 3 times to get to 100,000 in the next decade. But the returns on carefully selected stocks may be much much bigger.

It’s all about being at the right place, at the right time and seizing the opportunity…

Of course, you could always settle for moderate gains, by betting on the index, for the next few decades.

But why would you do that?

Opportunities like the Rebirth of India may not come along again in your lifetime.

This could probably be your only chance to create massive wealth from stocks that you have always aspired for.

Therefore, knowing exactly which stocks to buy and when is as important as identifying the Rebirth of India as your chronological lottery.

By Tanushree Banerjee

(5 Minute Wrap)

Happy Investing