Why you HAVE to be bullish on India!
Recently, I came across a presentation by Joshua Felman of the IMF, and realized that apart from the usual bullish arguments - the IT/ITES/BPO boom, demographic dividend, rising “middle class”, etc. - in favor of India, there is one other thing to keep in mind: until recently, we found so many ways to shoot ourselves in the foot that all we had to do was stop the madness - and see immediate benefits!
Case in point: A peak customs (import) duty of 150% in 1991.
And another one: Infrastructure spending, or lack thereof
And we still have so many inefficiencies (e.g. FSI limits on real estate, capital controls on foreign investment, government interference in education, etc.) that as long as we keep removing them, we will reap huge rewards for some time to come.
PS: Felman has also put together an excellent review of the Indian rupee.
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