India becomes major rival to China
Investors should acknowledge certain structural shifts in the global economy with the eventuality of India becoming a major growth rival for China over the coming decades, according to a boutique asset manager.
4D Infrastructure said that although China was still expected to remain a major growth engine for the global economy, it was India that would emerge soon as its serious growth rival.
Additionally, according to global equities strategist at 4D Infrastructure, Greg Goodsell, Chinese one child policy had extensively detracted its demographic profile while India would still have "young generational cohort" expected to enter the workforce soon which would help sustain growth by efficiently increasing its share of the global workforce.
Also, a substantial expansion of India's middle class was expected to drive consumption and wealth creation among growing demands for improved infrastructure.
On the other side, according to 4D Infrastructure, India still would have to face a significant challenge such as the ongoing reforms.
Goodsell stressed that so far India's prime minister, Narendra Modi, who came to power in 2014, has managed to increase spending on the national infrastructure and introduce a national goods and services tax (GST) which would help unify people into a single market for the first time.
"What we can say certainly though is that, in terms of global economic growth, the coming century will be very different to the last, and China and India will be at the forefront of that experience," Goodsell said.
AUTHOR
Oksana Patron
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
The alternative asset manager has expanded its Singapore office with a head of Asian distribution, representing a “critical step” for the Asian business, where it is seeking to launch new offerings.
