I like reading the US Publication Business Week, because they have insightful articles. The most rec...
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I like reading the US Publication Business Week, because they have insightful articles. The most recent one is about the next generation of globalized industries that are set to propel India further in its dizzying growth path. There might be short hiccups here and there, like the current US recession and housing crisis that is affecting India's short term, growth prospects, but in the long term India's threats are only regional, Pakistan and Bangladesh and internal, Islamic terrorism, the upsurge in the Hindu right and Naxalism. Economically India is set to capitalize in several areas,
Sulekhites will be advised( as will the global investor community) to look at these and other cutting edge technologies to intelligently invest in the future.
"Welcome to the "Next Wave." We are living in an unprecedented point in human history when the new consumer, technology, infrastructure, and environments begin to converge and create one of the worlds greatest eras of economic growth and technological innovation.
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"Investments in infrastructure will exceed the total investments in the reconstruction of post-war Europe. Technology and the Internet will be the great enabler, facilitating the development of multiple centers of innovation across a wide range of geographies. And the environment will be a critical thread within this new tapestry, as climate change and the need for resources push humankind to find new approaches to economic development and sustainable growth. Although China, Brazil, Russia, and other emerging markets will drive much of this, India stands at the forefront with its rapidly growing middle class, massive investments in infrastructure, a technology-based culture, and growing need for energy and other natural resources.
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" Among the most significant of these "Next-Wave Verticals" are media and entertainment groups. They are gaining importance in India because of the countrys growing middle class, improving literacy rates and increasingly organized retail sector driving demand for print, radio, and TV content. Improvements in infrastructure and advances in technology are also rapidly increasing media penetration in rural areas of the country where more than two-thirds of the population resides. "
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"Private education will also ride Indias Next Wave as an aspiring population seeks to give its children and itself the greatest opportunity to succeed and prosper in the new economy. With the exception of the world-renowned Indian Institutes of Management & Technology, the Indian public school system has proved to be a dismal failure. As a result, Indian citizens of all socio-economic brackets have looked increasingly to the private sector for their education needs.
All Eyes on Manipal Education
As with other Next Wave Verticals, technology and infrastructure have fostered the rapid expansion of private education as Internet-based learning programs create opportunities for distance-learning, and improvements in communications and roads have created new education institutions in rural areas of the country.
Private education in India is growing more than 30% per year, and the profitability of this sector exceeds that of most North American institutions. Companies like Manipal Education are at the forefront of this growth as they continue to develop innovative solutions to meet the increased demand. "
"Environmental services is becoming one Indias the fastest-growing Next Wave Verticals, as an increasingly industrialized economy and wealthy population elevates the need for clean air and water and the recycling of scarce natural resources. The Indian government is looking to the private sector to build and manage numerous aspects of environmental services to include waste-water treatment, hazardous waste disposal and air-quality control systems. Considering that approximately 70% of Indias cities do not have adequate waste-water treatment, the financial opportunities in this area alone are significant. Indias carbon-credit market is currently valued at $5 billion and is expected to double to $10 billion by 2009."
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"India has very little in the way of crude oil reserves and finding new fields will become a costly proposition. As Indias economy continues to grow, so will its energy needs. Developing renewable sources of energy is a national priority. Renewable energy only accounts for about 5% of Indias total energy consumption. The Indian government has set a goal of generating 50% of the countrys energy needs by 2050. This will require massive investments in a wide range of renewable energy sources. "
My Comments: Looking at the possibility of Peak Oil being reached well before 2050, this objective might have to be revised upwards, within a decade, if not earlier.
"Moser Baer Photovoltaic Planning an IPO
India is already developing technical and manufacturing leadership in several areas including wind, solar, and biomass. Suzlon Energy, a publicly traded Indian company, is now the worlds fifth-largest wind energy provider, and its ranking is expected to climb in the near future. Moser Baer Photovoltaic, which is planning an initial public offering in 2009, is becoming a global leader in the development and manufacture of thin-film solar technology. And Bhoruka Power has become a leading player in the small hydro segment for power generation in India. "
But the largest manufacturer of agricultural vehicles in India, Mahindra & Mahindra, is taking the lead in biodiesel. In February, 2007, the company introduced versions of its two most successful sport-utility vehicles, Scorpio and Bolero, which run on biodiesel. Scorpio is the first Asian vehicle in its class running on 100% biodiesel. ( My emphasis)
Mahindra also unveiled a biodiesel tractor for the first time in India. ------------------------------------------------------------------------------------------------------------------------------
Second Largest Producer of Sugar Cane
That day may not be far off, as India is the worlds second-largest producer of sugar cane, which is a preferred source for ethanol. Renewable energy will provide investors and joint venture partners with significant returns during the coming years. And with opportunities in solar, wind, ethanol, and biodiesel, numerous global synergies are emerging exist between homebuilders, power companies, and automotive firms. Savvy investors and corporations already recognize the significant potential of the Next Wave.( My Emphasis) They know another wave like this wont crest for another 20 years or 30 years, and theyre eyeing opportunities to capitalize on this unique opportunity.
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William Nobrega iMr. Nobrega is the author of Riding the Indian Tiger: Understanding India the Worlds Fastest Growing Market, published by John Wiley & Sons. Mr. Nobrega is currently working on his next book, entitled The Next Wave: How Investors Can Ride an Era of Unprecedented Economic Growth and Innovation; it will be released in 2009.
Selected excerpts from the article to read the full article visit Businessweek at:
If India can get's internal (and external, with immediate neighbors) security arrangements in order, the future looks quite rosy. As the private sector genii is out of the bottle, the government will have to do little but to keep its greedy and sticky fingers away from the growing pie, except to tax (at a rate that will not kill the goose, laying those golden eggs)some of the capital gains must be tapped to give better opportunities for the poor and middle class for the localized economy.
Selected excerpts from the article to read the full article visit Businessweek at:
www.businessweek.com/globalbiz/content/jun2008/gb20080612_463518.htm
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I am glad this could be useful Avinash.
Rgds, Girdhar
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Thanks for bringing this to my notice. i am sure to benefit.
Regards
Avinash
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SvengaliYes! The next generation of globalized products are a good bet for India.
Rgds, Girdhar
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Thanks for posting this.
I have been tracking Suzlon too...seems like a good investment.
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