For an individual that has been closely associated with the two business sectors in the
This sense of deja vu is not of the same optimistic kind promoted and shared by a lot of other evangelists of developing world growth patterns.
I rejoice at the phenomenal growth that has and is continuing to happen in
Let's not forget what the acronym ITES stands for - Information Technology Enabled Services, in the majority of cases this is nothing but once again a fancy term for low end backroom processing support work that has been offshored to India from the more developed nations.
Support activity can only happen if there is primary business activity to be supported, if we keep on creating and encouraging an environment where home grown physical industries are decimated and discouraged we will face the same consequences that the US is currently facing.
The home grown US economy is already frayed at the edges and is starting to tear apart due to the lack of regular investments in in the physical infrastructure for almost the last 30years. Let's not forget even the robust internet era of the 1990's in the US could not keep the economy going for long.
I understand all investments follow the money trail, but you cannot have isolated islands of economic prosperity and growth in a land of 1.2billion people, not have some kind of equitable balance being maintained without having nasty repercussions. We have seen the former
At the time when I was moving to the US in the early '90s, major trans-national consumer (hard and soft goods) corporations were making a beeline to India to capitalize on the spending power of the - emerging Indian middle class. Many of them lost their shirts in the ensuing years and some have barely managed to stay around profitably even after all these years. This despite all the years of boom activity.
There is risk in all activity, however when people lose sight of rationality in understanding and accepting risk, it is politely termed - Irrational Exuberance, or in layman terms - Stupidity!
The Indian stock market has been growing at a double digit rates for the past few years, the real-estate situation is even worse prices are going up in triple digits and the lay people are lapping it up in the name of growth, being led around by organized opportunists - like rats dancing to the tune of the Pied Piper!
My opinions may seem harsh to many, but I have my reasons and will elaborate on them going forward.