Could today’s India outshine yesterday’s China?
By Kristen McGachey, 17 Aug 17
Though it might be tempting to view today’s India as yesterday’s China, Rathbones’ head of asset allocation Ed Smith thinks the region’s growth prospects could be even greater based on five key indicators.
Although India’s 2% share of global manufacturing exports is what Smith terms “astonishingly small”, the services sector is where he thinks the country can really have a competitive edge over China.
“Services are less susceptible to Western threats of protectionism and there is no dominant emerging market player in the sector (China has not grown its share at all this millennium).”
The fact that India’s reserves and annual gross domestic savings are of a similar size to China’s in 2000, which went on to increase by almost $3trn and $5trn, respectively, will also bode well for its growth potential, he added.
