Buy India, Sell China

by James Gruber on March 8, 2013

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{ 4 comments… read them below or add one }

rajesh March 21, 2013 at 10:55 pm

That’s really surprising.. Narendra Modi has been in the news for a lot more than godhra ( not to take away the fact that the incident is quite a blot on his career and a burning one too). Gujarat is today India’s best state in terms of administration, efficiency, lack of corruption and the clearly the easiest state to do business in. The state infrastucture – be it transport, energy is the fastest growing and most developed in India. Mr. Modi is percieved by Business and by Financial Markets as being decisive and efficient and this perception is based on his track record for the last 10 years; 7 out
of 10 Financial Market participants want Mr. Modi to be PM;
I am part of a Bank’s Financial Markets Sales Team in South India and i get the opportunity to talk politics and economy with pretty much all the large corporates in the South and i can assure you that support for Mr. Modi amongst this community is overwhelming.

sankaran March 12, 2013 at 10:37 am

I agree largely with the views mentioned. However I don’t think India can manage its current account deficit unless she liberalises seriously . With the policy options limited for India, and rampant corruption among the policy makers , India’s only hope is leadership and a feel good factor. And these have to run the course for at least a decade to produce results.
Hopefully Chinas woes may turn a blessing in disguise for India that FDI flows increase. And last but not the least India is just ahead of Africa in the minds of investors and clearly seen to be a testing ground for the future that is Africa.
So India may be lucky again despite its failings but don’t tout India shining still. In my view the reversal of flows and currency strengthening need to be visible before putting more of your money to work in India for the long term.

Prakasam T March 11, 2013 at 12:23 pm

It is sad that some people remember Modi only as the instigator of anti-muslim riots. These people have clearly not done their homework, they’ve never visited Gujarat or spoken to someone who has, and yet pass judgment. Wake up mister! I too am from South India, but have been reading about the development and infrastructure in Gujarat. Modi has indeed provided a clean administration to the common man. No wonder he has been elected and re-elected over the last decade after the riots. Modi has always contested the elections on the growth plank and not on any communal lines.

Thottam March 11, 2013 at 2:08 am

Dear James,

You speak of Narendra Modi, the Chief Minister of Gujarat as the “well-known economic reformist”, frankly this is the first time I have heard of this. Granted I split my time between North America and Southern India, but most of my relatives and friends living in India, only know of Narendra Modi for his role in the Godhra related riots that targeted the Muslim minority.

The danger of the BJP coming to power would be a repeat of the Hindus-Muslim riots of 1992. This would mean pushing India back by a decade.

FYI I am neither Hindu nor Muslim but Christian, so my comments are those of an outsider.

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