Friends, Get Ready To Invest..

Few years back, I used to read spam emails about "India would become Super Power by 2050 and there will be something called "Harra Patta" (antonym of US Green Card and work permit for India).



I guess friends"Time has come". Not because that we have done something really big,smart or wonderful. But the world has screwed up "Big Time". Few countries have declared Bankruptcy and some are on the verge of doing it.

Thankfully and fortunately we are not export oriented countries like China, Japan, Taiwan or anyother Asian countries. An Indian economy has 80% internal usage and only 20%export based. Hence India is mostly dependent on its own production and consumption.

Another blessing in disguise is the CPM being part of the government did not allow Congress to do much so-called reforms and hence our banking system is not directly impacted by the financial turmoil across the globe.

Now NRI's all across the globe are looking for safe placements of their money, forget about the returns. If Indian banks can tap in that mammoth amount of quality FDI funds and that too is available for real long term tenure, we should be able to solve some of our liquidity problems.

Moreover, government needs to do more by dropping the CRR rate more, increase Pension, Insurance etc groups participation more in the stocks (remember this should be temporarily -otherwise we might end up like US today).

Indians on an average have savings of 35% of their income (for e.g. service class has 12% provident fund,around 10% in Insurance premium by them or by their companies and assuming another10% savings in their bank accounts).

One better thing is that our industries/companie s have not been performing like in US or other parts of the world. They were making profits till the last quarterly results.In the worst case their profits will be hit in this and few next quarters but they will not be locked down or will file for bankruptcy as in US.

Our Forex reserves are still over US $280 Billion.

We can re-build our Nation sooner andfaster than anyone else. It is not the time for Panic (or panic selling)!