The United States and India-Merging of Two Giant Technology Centers of this World?
Stock Markets are a derivative of underlying fundamental changes in productivity trends. Stocks go up in general because productivity of the human race increases over time. Macro economic trends are very important to consider when speculating or investing in Equity Markets.
With the birth of Tech companies like Infosys (INFY) and Wipro (WIT) in India, who would become global Tech leaders in less than a decade, we suddenly are in a world where geographical barriers are reduced to nothing. This is great for investors-I as a shareholder of a company don't care too much where they do the operations, where they do the support-as long as it is done efficiently, and of course, ethically. Granted India a little bit behind on the ethics part in comparison to the developed world-but in efficiency, the Indians are great. And the ethics issues will follow thru in the coming years and decades.
Indo-US ties have improved considerably in the last few years. Political ties generally follow economic ties (not the other way around, as most people think...), and with increasing investments from US Tech companies like Intel, Microsoft and Cisco in India, they are destined to come closer. A survey done about a year ago showed that The United States had the highest ratings in India outside of the US itself, with 76% pro-America. The survey was done in context of the Iraq war, which is even more noteworthy-American support in India was higher than that in Britain and Australia, direct allies in the US lead Iraq war.
Looking at it from an Investment perspective-wherever we can remove bottlenecks like Customs, socialist protection mechanisms, etc. you end up generating shareholder wealth, because productivity increases. Less time of the management and the workers is spent dealing with bureaucracy-more on running the company more efficiently, pursuing new business opportunities, etc. Great for Shareholders.
Since India is has the second highest English speaking population in the world (after the US), and since the Internet is becoming more and more English dominated (yesterday Chirac came out with wilder plans to end the American domination of the Internet; the Europeans don't seem to learn---Airbus is still making planes at unknown costs and profits, competing with Boeing...), it is natural that US and India come closer together to take advantage of it.
In the next five to ten years you will see a massive interest in the Indian Internet sector, and companies (and their stocks!) like REDF and SIFY are bound to draw more and more worldwide interest, especially in the US. It is not inconceivable that some of the Indian Internet sector companies will become worldwide leaders, just like INFY and WIT for the Outsourcing/software development sector.
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Sanjay John G.
With the birth of Tech companies like Infosys (INFY) and Wipro (WIT) in India, who would become global Tech leaders in less than a decade, we suddenly are in a world where geographical barriers are reduced to nothing. This is great for investors-I as a shareholder of a company don't care too much where they do the operations, where they do the support-as long as it is done efficiently, and of course, ethically. Granted India a little bit behind on the ethics part in comparison to the developed world-but in efficiency, the Indians are great. And the ethics issues will follow thru in the coming years and decades.
Indo-US ties have improved considerably in the last few years. Political ties generally follow economic ties (not the other way around, as most people think...), and with increasing investments from US Tech companies like Intel, Microsoft and Cisco in India, they are destined to come closer. A survey done about a year ago showed that The United States had the highest ratings in India outside of the US itself, with 76% pro-America. The survey was done in context of the Iraq war, which is even more noteworthy-American support in India was higher than that in Britain and Australia, direct allies in the US lead Iraq war.
Looking at it from an Investment perspective-wherever we can remove bottlenecks like Customs, socialist protection mechanisms, etc. you end up generating shareholder wealth, because productivity increases. Less time of the management and the workers is spent dealing with bureaucracy-more on running the company more efficiently, pursuing new business opportunities, etc. Great for Shareholders.
Since India is has the second highest English speaking population in the world (after the US), and since the Internet is becoming more and more English dominated (yesterday Chirac came out with wilder plans to end the American domination of the Internet; the Europeans don't seem to learn---Airbus is still making planes at unknown costs and profits, competing with Boeing...), it is natural that US and India come closer together to take advantage of it.
In the next five to ten years you will see a massive interest in the Indian Internet sector, and companies (and their stocks!) like REDF and SIFY are bound to draw more and more worldwide interest, especially in the US. It is not inconceivable that some of the Indian Internet sector companies will become worldwide leaders, just like INFY and WIT for the Outsourcing/software development sector.
Subscribe now to The Wall Street Journal and get up to 8 weeks FREE
The Prudent Speculator -- Ranked #1 by Hulbert for 10, 15 and 20 year performance...Click Here!
If you subscribe to the Wall Street Journal or the Prudent Speculator(a Forbes.com publication) using the links above, I get a commission.
Sanjay John G.
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