17 October 2008

Economist positive on India

The Economist thinks that things will turn out well in the medium and long term for India, once the current global meltdown settles down. Here is an excerpt.

"All of this might mean that once the dust settles, India is likely to re-emerge as an attractive investment destination. At least in the short term, growth in India's flagship IT-services sector is likely to slow because of the financial-sector crisis. But the rupee's depreciation will help to shore up the profitability of IT and other exporters. More importantly, Indian IT companies, as well those in other industries, are stepping up acquisitions. Strong growth in the past few years has given Indian companies the financial muscle for large acquisitions, just as the global slowdown is putting good international companies on the market. 


Both Indian companies and regulators recognise that India cannot escape the global meltdown. However, Indian companies are looking for opportunity in the crisis, while regulators remain on standby to ease conditions as much as possible. That, perhaps, is as much as anyone can do in the current situation."

PS: The jillion dollar question though is when will the international dust settle? 

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