Monday, 29 October 2012
Economic Dominance Prompts Investors to Invest in Asia
For over a century the United States has been the largest economy in the world. However, the transition of global economic powerhouses has seen a shift from the United States, to the rich countries Europe, then to China and now; investors are focusing their attention on India.
With the current investor-hype India is receiving, it is as though the world had just discovered it. Yet, India's economic success is far from new. After independence in 1947, India made decades of meager progress, as its economy grew at an average GDP rate of 4 percent per year; between the 1950’s and the later part of the 1980’s. India's economy experienced a huge leap of 7.5 percent annually, between 2002 and 2006, which propelled India into the spotlight and earned itself recognition; as one of the world's best-performing economies. These impressive figures have prompted more and more investors, to seek access to Asian markets and a share of the region's prosperity.
Despite a myriad of obstacles that will challenge India's 1.1 billion people, the country is expected to record the second fastest growth among the world's major economies, by 2020. According to the IMF, India will experience phenomenal growth of 9.7 percent, which will only be outperformed by China's bustling economy; which is expected to grow by 10.5 percent. Fueled by the ongoing financial successes and steady GDP growth of these two economic powerhouses, investing in Asia has become a very appealing option for private investors, across the globe.