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Thursday, January 4, 2007

Bold Predictions for India

My fellow Indians,

This is really exciting news!

Enjoy it and pass it on.
Jai Hind

Mike Ghouse


Sneak Peek 2007Ruth
David On India
12.31.06, 6:00 AM ET

The Big TrendAn India story that's not just about information technology and theservices industry. Companies in sectors like retail, telecom,manufacturing and pharmaceuticals will expand globally whileconsolidating India operations. Cross-border mergers and acquisitionswill continue, with the average deal size increasing in value.

InIndia, the number of people working for foreign firms is bound toincrease, but there will also be a rise in the number of Westernersworking for Indian firms as they set up bases outside their country.The Unconventional WisdomDespite political pressures within India's ruling coalition anddisagreements with state governments, reforms in the power andinfrastructure sectors will make sustainable progress. Indians mayhave resigned themselves to problems like interrupted power supply andbad roads. But state governments will realize that if they want toretain foreign and domestic investments, they need to fix thesebottlenecks.

The Misplaced AssumptionThat India is unstoppable, the market will continue to boom, realestate will stay at inflated levels and India will soon reach the highquarterly growth rates of 10% politicians and economists arepredicting. Despite the economy's growth spurt in the recent years,the anticipated demand far exceeds potential supply. Skyrocketingwages won't help solve the shortage of skilled labor. And that's notall--infrastructure is not equipped to deal with the onslaught offoreign and domestic investment.

India may get a bit too hot to handle in 2007.The Watch ListManufacturers and alternative energy companies -- Manufacturing willcontinue to show its recent sustainable strength. As India strugglesto meet it growing energy needs from renewable, nonpolluting sources,there will be a push toward wind energy and bio fuels, like ethanolfrom sugarcane. Accord on the India-U.S. nuclear deal will result inlarge investments in building nuclear plants and a land grab byAmerican and European multinationals for lucrative energy contracts.

The Bold Prediction

The Indian government will allow foreign universities to enter India,setting in motion a revolution in education and helping the countrymeet the growing demand for an educated workforce. Only 50 million ofIndia's 1.2 billion people have degrees past high school. As globalcompanies head to these shores in search of talent, there's an urgentneed to increase that number. Foreign institutions will ease thepressure on crowded Indian schools as well as give graduates a chanceto specialize in a wide range of fields.

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