Inefficiency of India markets presents strong opportunity

Few would deny the economic power shift underway from West to East, and India (alongside China) is racing ahead with strong tailwinds.

Its economy has momentum and the country could be one of the greatest investment opportunities of a generation, India is expected to be the sixth largest economy in the world (by GDP) by 2020, rising from 12th in 2008. At 9.4% the IMF 2010 GDP forecast compares favourably with the UK’s rather pedestrian 1.2%. A number of key drivers underpin this considerable growth forecast. Supported by a 1.2 billion population with a rising middle class, a high savings rate (37% versus single digit in the UK), low levels of leverage (individuals, corporate and government), a domestic consumption bo...