Rakesh Jhunjhunwala On Why India Is A Great Place To Invest

Following are a list of reasons why Rakesh Jhunjhunwala believes India is a great place to invest:-

India owes its progress to the following factors:

• Efficient capital allocation
• Sustained earnings expansion driven by growth and productivity
• 8 per cent+ real GDP growth + 4 per cent + Inflation = 12 per cent + Nominal GDP growth
• Corporates to grow faster than unorganised sector
• Operating and financial leverage to kick in
• Corporate earnings to grow at more than 18 per cent
• Favourable framework for equity investing
• Rising savings, yet low equity ownership — significant potential
• Corporate governance
• Transparency
• Effective regulation
• Electronic trading
• Dematerialisation
• Tax paradise for equity investing under the STT regime
• A large pool of skilled people
• Favourable demographics
• Domestic consumption-led growth
• Increased productivity.
• The withdrawal of reservations for small scale industry may result in the closing down of small firms, but it will also benefit the larger companies.