August 12, 2006

India and China: Rivals in Investment Market

India and China are two vast countries that have opened their market to the global investors. Their markets are filled with full opportunities for private equity investors. Their rising economic fortunes left the investors confused over the decision of selecting one of these two great nations. In order to woo more investors to their soil, both countries have become rivals in true sense.

India might not be a safer bet for investors because of its poor infrastructure and poverty. Despite of these negative pitfalls, India may be hopeful to attract investors because of a liberal economy that is pursued by successive democratic governments. Other advantages held by India are a strong education system, skilled English speaking professionals and a deep pool of expatriates experienced in Western businesses.

On the other hand, cheap labor and foreign direct investment have made China the world's manufacturing powerhouse. Although China has a Communist form of government, it has embraced Western-style capitalism. In recent years, china has provided spectacular private-equity returns. However, loopholes in China's legal system and the fear of political instability may work against its prospects.

--
Did you enjoy this post?




Comments

Thanks for that quick little summary of India vs. China. Hear so much about these two places lately, it's nice to see that comparison in a mere two paragraphs.

Tradeopolis.com

Posted by: Jen | Aug 17, 2006 2:55:54 PM

Post a comment






« Indian Hedge Funds to Seek Outside Financing | Main | Investors' Dilemma in Hungary »