Tuesday October 24, 2017
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India’s dream of outdoing China: just a dream?

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Image source: skynews.com.au

By Sol Palha

India has had many aspirations to overtake China, but this is more of a pipedream than reality. India’s corruption makes China’s corruption seem non-existent. Add in the traffic jams, and filth one has to deal with in parts of Mumbai and Delhi, and the allure of investing in India loses its appeal rather rapidly.

This is the reason India continues to suffer such a massive amount of brain drain. Smart Indians understand that their best option is to seek greener pastures. Modi’s government had the strongest mandate of any government, yet like all his predecessors he seems to be all talk and little to no action; he has failed to implement any noteworthy changes.

The first thing he should have done was to streamline the investment process, by making it easy for foreigners to invest. With foreign investment comes a plethora of jobs; instead he continues to chant the same old song of change while marching to the drumbeat of no change. This century belongs to China, and the world recognizes this. No one flinches when Indian markets are tanking but if Chinese markets tank or there is some bad news coming out of China the world’s financial markets react and in most cases the reaction is usually very strong. From a mass psychology perspective, this tells us that the financial markets recognize China as the defacto leader and India if it’s lucky might manage to hold onto some position in the top 5. India will not take out China in the near future, but that does not mean one should not invest in Indian companies. There are still some Indian companies that are worth investing in; we would wait for strong pullbacks before committing money into any of these stocks.

We are going to list a few of Jim Rogers’s recent quotes as he seems to concur

You can’t just invest on hope. Even If reforms started coming, it may not be enough to make the markets go higher, because markets have already factored it in. If the reforms are substantial, the markets may go higher. No indication of that.

If Modi made the currency convertible, if he made the markets open to outsiders, then I would have to be back in India again. So far Modi has been doing worthwhile things like addressing some social issues — I am all for that, and that is great for a lot of people — but India needs more.

You have saved your farmers by making it illegal for foreigners to own more than five hectares — how on earth can an Indian farmer compete with an Australian farmer with 50,000 hectares? In history, India has been one of the great agricultural nations of the world — you have the land, the people, weather — God gave you everything. And then, he also gave you Delhi to mess it all up.

Conclusion

While the Indian economy has grown nicely over the years, we think the tiger will have a hard time dethroning the Golden Dragon. India’s has a GDP of roughly $2.1 trillion, and that sadly is a long way off from China’s current GDP of $11.3 trillion.

At this stage, it’s not even a close race. In fact, the odds are higher that China will displace the US as the top dog than India overtaking China. While there are some great companies in India, from a long-term perspective, China makes for a better investment as the market is extremely oversold; great companies are selling for a fraction of their former prices. For example, CHH, HNP and BABA are some companies worth taking a closer look at.

“Be ready when opportunity comes. Luck is the time when preparation and opportunity meet.” ~ Roy D Chapin Jr.

(The article was first published in safehaven.com)

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PM Modi inaugurates Ferry Service, Calls it his ‘Dream Project’

Calling it his dream project, PM Modi has called the service "a landmark occasion for entire South-East Asia".

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Prime Minister Narendra Modi. Wikimedia

Gujarat, October 22, 2017 : Prime Minister Narendra Modi inaugurated the first phase of the Ghogha-Dahej Ro-Ro ferry service, a first-of-its-kind project in India, calling it “a landmark occasion for entire South-East Asia”.

Describing it as his dream project, Modi said the ferry service was his “invaluable gift to India” and claimed that the even for South-East Asia, this was the first project of its size.

He said it were his efforts that gave birth to this ferry service which he had heard about only in his school days.

“It seems implementation of all good works are my luck,” Modi joked. “New changes don’t come from cliched attitude but new thinking. We changed the way of thinking,” he said.

He said the service would shorten a 360-km distance to 31 km or a journey of seven hours to one hour. (IANS)

 

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Asia Cup : India Emerge Champions for third time, Beat Malaysia in Asia Cup Hockey Championship

India emerged victorious for the third time

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(representational Image) India vs Malaysia Hockey Match wikimedia

Dhaka, October 22, 2017 : India overcame Malaysia 2-1 in the final on Sunday to win the Asia Cup hockey championship for the third time.

Ramandeep Singh (3rd minute) and Lalit Upadhyay (29th) scored for India. Shahril Saabah (50th minute) scored the reducer for Malaysia. (IANS)

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‘Dalai Lama is a Political Figure under the cloak of Religion, Meeting or Hosting the Dalai Lama is a major offence’ Warns China

In April this year, China had reacted violently to a visit by the Dalai Lama to Tawang, in India’s northeast border state of Arunachal Pradesh, large parts of which is claimed by Beijing.

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Dalai Lama
The 14th Dalai Lama, Wikimedia

Beijing, October 21, 2017 : As US Secretary of State Rex Tillerson prepares to visit India next week, China on Saturday warned that it will be deeply offended if any foreign leader meets with or any country invites the Dalai Lama.

On the sidelines of the 19th National Congress of the Communist Party of China, a Chinese Minister dubbed the Tibetan spiritual leader as a “political figure under the cloak of religion”.

“Any country or any organisation or anyone accepting to meet with the Dalai Lama in our view is a major offence to the sentiment of the Chinese people,” said Zhang Yijiong, Executive Vice Minister of the United Front Work Department of the ruling Communist Party of China (CPC).

“Also, since they have committed to recognising China as a sole legitimate government representing China, it contravenes their attempt, because it is a serious commitment,” Zhang added.

China accuses the Dalai Lama of stoking unrest and secessionist activities in Tibet from where the spiritual leader fled to India in 1959 after a failed uprising.

The Dalai Lama has urged for more autonomy for Tibet.

Beijing opposes any country or leader keeping in touch with the Dalai Lama.

“I want to make it clear that the 14th Dalai Lama, the living Buddha handed down by history is a political figure under the cloak of religion,” said Zhang.

In February this year, Tillerson had told members of the Senate Foreign Relations Committee during his confirmation hearing that he is committed to promoting dialogue on Tibet and receiving the Dalai Lama.

Top US Democrat Nancy Pelosi had visited the Dalai Lama in Dharamsala, India, in May, and sought to draw the world’s attention to human rights in Tibet, triggering protests by China.

China resorts to different tactics if any country hosts the Dalai Lama. For instance, Beijing blocked a major highway leading to Mongolia, crippling the economy there after Ulan Bator hosted the leader late last year.

Mongolia later apologised and promised Beijing never to invite the Dalai Lama.

“Officials, in their capacity as officials, attending all foreign-related activities represent their governments. So I hope governments around the world speak and act with caution and give full consideration to their friendship with China and their respect for China’s sovereignty,” Zhang added.

The comments from the Chinese Minister also comes days after Tillersoon described India as a partner in a strategic relationship and said the US would “never have the same relationship with China, a non-democratic society”.

According to reports, last month China refused to fund travel for visiting scholars at University of California, San Diego, apparently in retaliation for inviting the Dalai Lama to be its 2017 commencement speaker.

In April this year, China had reacted violently to a visit by the Dalai Lama to Tawang, in India’s northeast border state of Arunachal Pradesh, large parts of which is claimed by Beijing. (IANS)