Many people will react subconsciously. I don’t invest in India. Talking about what the Indian stock market and Indian companies do will not actually help me. Investors holding this view are really not very desirable; because now is the era of globalization, investing in US stocks is actually investing in countries around the world, because almost all companies in major countries around the world take US stocks market IPO as their first goal. The US stock company you may invest in may be an Indian company or a company run by Indians.
You can refer to my other article on India “India stock market and the emerging Indian tech giants“.
What is India’s national strength
The total population of India is nearly 1.4 billion, which is similar to that of mainland China. However, due to the rising national strength, rising national income, and rapidly rising cost of living, China’s new generation has low willingness to raise children. Within a year or two, India will immediately become the world’s most populous country.
The world’s 6th place in GDP, the total GDP in 2020 is US$3.05 trillion (IMF data), which is very close to the United Kingdom, not far from Germany. It is not the same order of magnitude as the United States and China, even if it is far behind Japan. However, the Indians are one of the most arrogant peoples in the world, and they have always claimed to be the only one or two countries in the world that can fight against China in all aspects.
But don’t forget that India is still a caste system country (the law belongs to the law and it’s difficult to implement). There are about 300 million people in the country who are untouchables. Living below the poverty line can only live a life like an ant, and women are in even more difficult circumstances. Some people estimate that there may be only about 100 million people in India who can have the basic human rights of people in developed countries and the right to complete education, and the elite of these people later went to the United States.
Business development is backward and uncompetitive
In addition, India’s business environment can only be described as poor, and there are still many areas that can be improved. For example, insufficient electricity, poor sanitary conditions, loose ethnicity, and low work efficiency of employees. Sadly, the government cannot keep up with the modern pace. There are nearly 40 official languages in the country. The expressways are not unified in all states, corruption and bribery are preoccupied, and bureaucracy and administrative efficiency are extremely poor.
And important industries are almost all monopolized by a few big wealthy people who have good relations with the government; a few people can be on the billionair list of Asia’s richest people, but the people at the bottom are living in hardship, and hundreds of millions of people have long lived under the poverty line defined by the United Nations. Moreover, the same conglomerate can cover everything from the monopoly of people’s livelihood to energy and telecommunications. This is the culprit behind the alarming gap between the rich and the poor, which has not changed for decades since independence from UK.
However, unlike Japan and South Korea’s conglomerate monopoly, India’s conglomerate monopoly can only be domestically, and there is no competitiveness at all when going abroad. Because the government deliberately protects almost all industries in India, although India is a country with a large land and population, there is almost no competitive industry available in the world.
Indian influence in the U.S.
Indian in US
The current U.S. Vice President Kamala Devi Harris and the former U.S. Ambassador to the United Nations (Nikki Haley) are both well-known Indians in American politics. In the Silicon Valley of the United States, the two largest ethnic groups of engineers for a long time are Chinese and Indians. White Americans are basically not engineers.
The first choice of old American white elites is lawyers and Wall Street, engaged in mergers and acquisitions and management. However, the Indians are compared with the Chinese because the upper-class Indians and the universities use English, which has an advantage over the Chinese in language, and the United States has a tradition of discriminating against the Chinese.
In addition, due to the rise of China’s national power in recent years, the whole country has resisted China; China For a long time (please note that it is a long time, 200 years, not just in recent years), it has been difficult for people to serve as decision-makers in power in American politics or business.
Inidan CEO for US listed companies
In the American business community, there are a lot of US-listed companies whose chief executives are of Indian origin, including:
- Satya Nadella of Microsoft (ticker: MSFT)
- Sundar Pichai of Alphabet (ticker:s: GOOGL and GOOG)
- Shantanu Narayen of Adobe (ticker: ADBE)
- Ajaypal Singh Banga of MasterCard (ticker: MA)
- Arvind Krishna of International Business Machines (ticker: IBM)
- Indra Krishnamurthy Nooyi, former CEO of PepsiCo (ticker: PEP)
- Rejeev Suri of Nokia (ticker: NOK)
- Sanjay Mehrotra of Micron Technology (ticker: MU)
- Sanjay Jha, former CEO of Motorola (ticker: MSI)
- Dinesh Paliwal of Harman International (ticker: HAR)
- Parag Agrawal of Twitter (ticker: TWTR)
- Nikesh Arora of Palo Alto Networks (ticker: PANW)
- Vasant Narasimhan of SanDisk (US stock code: WDC)
- George Kurian of Data Storage company NetApp (US stock code: NTAP)
What’s the point?
These are all super-large companies ranked in the Fortune 500, two of which have a market value of more than trillion US dollars. By 2020, Indians will be at the helm of 30% of the US Fortune 500 listed companies.
Please note that the first generation of Indians I listed are all born in India.
In a few days I will be writing about the Indian stock market and the emerging technology giants in recent years.
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