Wednesday, February 17, 2016

The land of opportunities

"If you want the present to be different from the past, study the past."
—Baruch Spinoza (Dutch, 1632-1677)
Word for the day
Indignant (adj)
Feeling, characterized by, or expressing strong displeasure at something considered unjust, offensive, insulting, or base.
Malice towards none
What was the nationality of the lineal descendants of "Babar - the invader", who were born and died in Hindustan?
Is there anything on record to indicate that they plundered any wealth from Hindustan to enrich a foreign land, or jeopardized the "National" interest for personal gains.
Please keep religion out of this for one moment.
First random thought this morning
I am astonished to note that Ita Nagar was listed amongst the dirtiest cities in India.
I last travelled to Arunachal Pradesh eight years ago. I found the entire State very clean and people extremely sensitive to the Nature.
I do not what is wrong here - either the city has seriously de-generated or the process of evaluation is flawed/corrupt.

The land of opportunities

The assembly elections in the state of Uttar Pradesh (UP) are one year away. However, given the critical importance of the state for BJP and also for those aspiring to put up a united opposition to BJP in 2019 general election, the State shall assume the center stage very soon.
If we go by the experience of the last elections in Bihar, the financial markets will engage in UP elections even more intensely.
If you pardon my audacity, I may say that - if we go by the experience of the last elections in Bihar, the engagement of the financial markets in UP elections may also be frivolous, superficial and unwarranted.
Some of my colleagues recently undertook an expansive tour of the state. What they have seen, makes me confident that the state is ready to assume its rightful place as the primary engine of Indian economy in next two decades or so, irrespective of the fact who is at the helm in Lucknow or New Delhi.
In my view, without bothering too much about the political process and complexities, investors may consider factoring the following facts and trends in their investment strategies.
First some widely known but still relevant statistical facts about the state:
(a)   Over 16% population of India calls UP home, but UP's economy is just 8% of national economy. Accordingly, per capita income of UP residents is about half of the national average.
(b)   About 30% of UP population lives below poverty line, the largest in India. Thus, the income inequalities and concentration of wealth is also higher in UP, as compared to the national averages.
(c)    UP has the highest population density amongst the larger states in India, but only one fourth of its population lives in urban areas. The state has over 45mn urban dwellers, but there are only six cities with million plus population. The largest city Lucknow hosts ~3mn people. Even villages of UP are crowded as per national standard.
(d)   The population of the state is younger, more productive and more literate than the national average.
(e)    The share of industry and manufacturing in the state economy is less than 12%; the balance being divided equally amongst agriculture and services.
(f)    UP is the largest producer of milk and sugar cane in the country and second largest producer of vegetables.
(g)    UP economy has grown at a faster rate than the national average in past three years.
These statistical facts juxtaposed to our observation create some amazing investment opportunities, in my view.....to continue tomorrow

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