Customer Reviews

India: An Investor's Guide to the Next Economic Superpower

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I have been looking for an opportunity to invest in India and I found the book very helpful. The book helps to seperate fact from fiction and dispel a lot of myths about the Indian market. The author has a thorough understanding of the context within which the Indian market operates which makes the reading both interesting and informative.

I recently finished reading a book titled India: An Investor's Guide to the Next Economic Superpower by an analyst named Aaron Chaze. It's a well-researched tome on India's economic transformation. While Chaze is bullish, as you might expect, he's downright giddy when it comes to infrastructure. "Thanks to decades of corruption and neglect that retarded infrastructure creation," writes Chaze, "India now has the best potential for investment in infrastructure, not only in Asia, but in the world."

A good slice of that potential is in power generation. As with North America, there's been a widening gap between demand and supply. That gap has just exploded over the past decade. Unlike North America, India is building a lot of brand-new capacity.

Most Indian households - about 60% - still use traditional sources of energy, such as firewood. Increasing prosperity in India, though, is leading to rapid change. Chaze writes, "The explosion in demand once these households start wanting their share of energy is driving feverish additions to capacity."

India is not the whole story. Just a part of what's shaping up to be a monsoon of spending on electrical infrastructure.

Review by a writer for Agora Financial, publisher of economic and financial analysis including Financial Reckoning Day Fallout: Surviving Today's Global Depression, The New Empire of Debt: The Rise and Fall of an Epic Financial Bubble, and I.O.U.S.A.: One Nation. Under Stress. In Debt.

The author presents a case for investment in India which is not substantiated by the latest 2007 World Bank estimates of actual Indian gross national product(gdp) figures.THe World Bank has recalculated India's gdp figure and found that India's gdp is at least 40 % SMALLER than previosly estimated.The figures that the author presents in his first chapter are very inaccurate.Future average Indian gdp growth rates will not come close to the 7%-7.5 % projected.Similarly,it is simply not the case that India's long run average gdp growth rate since the mid 1990's is anywhere close to 6.5 %.The author glosses over the fact that India has not yet successfully created the educational, legal,political, and judicial institutions necessary to reduce intolerable uncertainty to a minimum.Until these necessary institutions are created and the laws are enforced, countries like China,India,and Kenya will not attain the balanced economic growth that can be sustained only by the existence of a large and growing,upwardly mobile middle class.