BRIC: Will India be a global economic leader?

India, or the Republic of India, is the most populous country in the world and at the same time the seventh largest in terms of area.

Due to its location and the past of the British dominion, India is becoming one of the future powers of the future. It is predestined for this by a large internal market and the potential for global expansion.

India is one of the developing countries that has recently undergone rapid economic growth. Compared to the rest of the BRIC countries, ie Brazil, Russia and China, India has the advantage of being a British dominion in the 19th and 20th centuries (a dependent territory similar to colonies or protectorates, for example). As a result, English has been introduced as the official language in the country. India thus benefits from both the language skills of the population and its geographical location. Many companies doing business in the United States or the United Kingdom are establishing branches, development and call centers in India. India is one of the largest countries offering outsourced services. Read also: Brief description of the BRIC countries

India in numbers

As mentioned above, India currently has a population of 1.21 billion. After China, it is the most populous country in the world. According to the performance of the economy, in 2010 gross domestic product in purchasing power parity totaled $ 4.06 trillion. Calculated per capita, GDP was $ 3,500. In terms of total GDP, India ranks fifth, compared to 162nd per capita. The Indian economy grew by 10.4 percent last year. By comparison, the best-performing country is Qatar, which grew by 16.3 percent. The Czech Republic, with GDP growth of 2.3 percent worldwide, reached 140th place.

In particular, India is driven forward by a favorable demographic composition of the population. Over 60 percent of the population is under 30. The performance of the local economy since 2005 has remained at an average of about seven percent. Over two million graduates leave university every year. They contribute to the wealth of the middle class and domestic consumption. It accounts for 65 percent of gross domestic product.

Natural wealth as the basis of expansion

Although it does not seem so at first glance, India has great potential for future expansion. Thanks to its convenient geographical location and favorable climate, it has the ability to feed its own population. This is not the case with hunger storms such as people in the Third World. In addition, it has its own relatively rich oil and gas fields. India is thus not energy dependent on other countries. In addition, it exports oil and gas. However, they are not among the world’s largest exporters of these strategic commodities.

Agriculture is able to feed almost 1.21 billion people. The main crops include rice, wheat, tea, sugar cane, lentils, onions, potatoes. Cotton, rape and jute are grown from industrial crops on the Indian subcontinent. Fishing and pastoralism have their place, especially sheep and goat farming.

However, intensive agriculture takes its toll. This leads to a deterioration of the environment, which is manifested mainly by soil erosion, reduction of groundwater and soil depletion. Fertility chemicals are added to the soil. In addition, India is often plagued by harsh climatic conditions. Exhausting droughts and heat alternate with floods and earthquakes.

The main focus of the industry is on food processing. Other industries include textiles, chemicals, engineering and pharmaceuticals.

Investment opportunities

If you want to invest in the Indian economy, you can use the open-end mutual fund Parvest India. Other funds from the Parvest group include BRIC Equities. Both forms are supervised by BNP PAM, which belongs to the BNP Paribas group.

Investments in Indian companies are also offered by other investment companies. We can name, for example, the mutual fund ČSOB Equity Fund BRIC, Espa BRIC, HSBC BRIC, KBC BRIC, Templeton BRIC.

If you are thinking of investing in the Indian economy, keep in mind that India, along with Brazil, also has the advantage of being a democratic country. While China and Russia are subject to totalitarian regimes that do not want both people and investment.