Why you should be bullish on India!

The Hindustantime writes,
When it comes to managing finances, Indians are ahead of citizens of United States, Japan, South Korea and some other developed countries, says the ING Consumer Resourcefulness Survey. Also, Indians turn out to be the second, out of 10 leading nations in the world, to have a basic financial literacy level (55%), just behind the Japanese.

“The survey shows that Indians are better at managing their finances than most of the other countries in the survey, including being better prepared for their various life stages, especially retirement,” said Uco Vegter, chief marketing and strategy officer, ING Life . “However, they do tend to get lost in sourcing good advice to become better at money.”

The survey, conducted by ING Group, in association with the research consultancy firm Epiphany, was carried out among 5,000 consumers across 10 nations.

“Majority of Indian consumers have shown better skills in managing their household financial budget and are confident of facing any financial impediments in future, as compared to citizens of 9 other countries,” said the survey.

The survey shows a staggering 84% Indians prefer buying life insurance products compared to 54% globally and a similar percentage of Indians believe in maintaining a household budget with focus on savings. Indians are much risk averse in case of borrowing money. While average Indians manage their finances in a much organised manner, they borrow money in case of needs such as buying a home (50%) and a car (43%).

Our analysis:

The indians are great savers, and this strength might play very well to make that Nation a dynamic market over the longer run; maybe much more dynamic than its Chinese counterpart! Why?

While the Chinese economic growth seems to have been the result of top to bottom policies, thus explaining its rapid and spectacular performances, the Indian economy seems to be founded on sounder foundation based on capital savings and more or less entrepreneurial directed investments. This prevalence of entrepreneurs in India, while not well acknowledged by the financial markets, establish the Indian economy on a much sounder foundation than the Chinese system of State capitalism.


 State directed investments often ignore  prices and misallocate resources uneconomically to satisfy the target rate of " growth" established by the central government. On the other hand, entrepreneurial investment, when left unfettered by monetary distortion, reduce the possibilities of uneconomic excesses and enable failed project to go bankrupt; thus clearing the system of error and directing new capital where they can better be exploited to satisfy consumers demand. 


The Indian growth has been slow compared to China, but it is my contention that in the longer run, the Indians will have a better and sounder economy because of the prevalence of entrepreneurs as opposed to the Chinese communist party directed growth policies! Now, if the Chinese can rid themselves of the " communist cronies' are establish a sounder political structure with entrepreneurs having a freer hand from corrupt politicians, it will be very difficult to say which Nation will outperform the other!