Top Emerging Markets Archive - India

Recent developments in India have led me to reevaluate my opinion of investments in the country -- and I'm excited to finally have this quickly-growing nation as an investable opportunity. In fact, I'm already seeing opportunity in an Indian company that is benefiting from the vibrant growth of the Indian economy in general, and particularly the rise of the Indian consumer class.

Now, I've been avoiding investments in India for some time. This is because the country can be baffling -- the numbers look good on paper, but when you visit, the country is an absolute mess. However, though I'm still cautious, I think it might be worth looking into India for some trading opportunities. As market conditions improve, there may be some exceptional profits to be had.

Over the weekend, it was announced that India's Congress Party had won the country's political election with Manmohan Singh becoming the new Prime Minister. Indian's and investors alike cheered this recent development, pushing India's Sensex index up 17% in trading on last Monday. While this is a positive development for India, I remain hesitant that this equals brighter skies ahead for Asia's third-largest economy.

India's stock exchange has taken great strides so far this year, rising around 23%. And many people have asked me if that means it's time to start investing in India again. But I still see a number of trends that are weighing heavily on India's economy and will likely hamper economic growth there in the months ahead.

Many investors -- myself included -- have high hopes for India's economy. The country has lots of useful resources, and its businesses are overflowing with once-in-a-lifetime investment opportunities. But unfortunately, this high potential is being overshadowed by the global economic crisis, as the country is being hit hard.

If you've read my commentary on India before, then you know that I've been avoiding investments in the country for awhile now. While India has posted robust economic growth in recent years, viable investments are hard to come by there. That's because Indian companies aren't closely regulated or well-ran, leaving them open to scandals like the current one at Satyam Computers.

As a year that was already plagued with one of the worst economic and financial crisis of all time drew to a close, tensions rose in Asia. In the last month of 2008, a number of nations in Asia were victim to conflicts and terrorist attacks.