Despite Chinese economy doing better than India, Lotus India CEO Ajay Bagga predicts a rosy picture for Indian economy in the next 10 years.
MUMBAI: Lotus India CEO Ajay Bagga is of the opinion that though China will outpace India in the short term as far as economic growth is concerned, India will eventually overtake the Asian dragon in the long term.
Speaking to UNI, Mr Bagga said, ''In the next three years, the gross domestic product (GDP) growth rate of China will be much faster than India since nepotism and red-tape is relatively much lesser there.
Things can be speedily implemented with hardly any resistance. However, in the next 10 years, India will eventually supersede China. That is because some very fundamental things like corporate transparency and disclosure norms are far superior here.
In fact, many would be surprised to learn that most of the corporate practices here are equivalent to global standards, he pointed out. These fundamentals will eventually help India to beat its competitor.
Asked about the recent trend wherein a large number of foreign mutual fund companies have made a bee-line for India and the consequent competition, Mr Bagga explained, ''The western market is currently saturated. For instance, in the US, against a population of say 300 million, around 95 million regularly invest in equities. But, on the other hand, in India, against a population of around more than a billion, only 25 million invest in the capital markets. Hence, the scope for further growth here is tremendous.''
''Therefore, there is room for competitors too here. Any foreign company looking for further growth now has got to look at China and India,'' he said.
Lotus India is a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide. It had earlier announced that starting from May 15 this year, all investments in Lotus IndiaContra Fund through a Systematic Investment Plan (SIP) will not attract any entry load. Also, the minimum SIP amount has been brought down to Rs 100 a month, thereby making it more affordable to the retail investors.
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