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A brief note on the Indian economy



The Indian middle class is fat and growing; wages are low; many workers are well educated and speak English; investors are confident and local stocks are up; regardless of political turmoil, the country presses on with economic reforms. But there is yet cause for worries :

1. Infrastructural hassles

The rapid economic growth of the last few years has put profound stress on India's infrastructural facilities. The projections of further development in key areas could snap the already strained lines of transportation unless massive programs of expansion and modernization are put in place. Tribulations include power demand shortfall, port traffic capacity mismatch, poor road conditions (only half of the country's roads are surfaced), low telephone penetration (1.4% of population).

2. Indian Bureaucracy

Although the Indian government is well attentive of the need for reform and is pushing ahead in this area, business still has to contract with an inefficient and sometimes still slow-moving bureaucracy.

3. Diverse Market

The Indian market is extensively diverse. The country has 17 official languages, 6 major religions, and cultural diversity as wide as all of Europe. Thus, tastes and preferences differ greatly among various sections of consumers.

Consequently, it is advisable to develop a better understanding of the Indian market and overall economy before taking the throw. Research firms in India can provide the information to agree on how, when and where to enter the market. There are also companies which can direct the foreign firm through the entry process from beginning to end --performing the requisite research, assisting with configuration of the project, helping develop Indian partners and financing, finding the land or ready premises, and close to through the paperwork required.

Mutual Funds
Mutual Funds