The Modi government is raising foreign direct investment caps . . . while offering tax incentives to investors in real estate and infrastructure.
Newport Beach, CA (PRWEB) September 03, 2014
The Indian stock market is one of the few remaining markets where investors can find value, and now is the perfect time to invest in India. We believe that – with the emergence of the reform-minded Bharatiya Janata Party (BJP) as the overwhelming winner of the May national elections – long-awaited economic reforms will propel economic growth for years to come.
These findings and more are highlighted in CB Capital Partners' new MarketWatch.com article detailing recently-completed research by CB Capital Partners' chief investment officer, Henry To. The article outlines why earnings of Indian companies should double over the next three years as economic growth accelerates.
While India’s history of corruption and lack of economic reforms have limited India’s economic and corporate profits growth in the past, we believe the Indian government is on target to implement much-needed reforms. Since the recent national elections in May, the BJP has already undertaken a fight against corruption and cronyism. This ranges from Modi warning his cabinet and state ministers against hiring family and relatives to the BJP’s recent graft investigation in India’s $74 billion healthcare sector.
The recent unveiling of the interim budget is also highly encouraging, as the Modi government is raising foreign direct investment caps for the defense and insurance industries from 26% to 49%, while offering tax incentives to investors in real estate and infrastructure.
With an economy one-fifth the size of the Chinese economy, and with a growing, and young, educated workforce, India’s best times lie ahead of her. Based on our research, we see realistic returns of about 15% to 20% in Indian equities over the next 12 months, with much higher returns for Indian private equity investments. Later in September, CB Capital will head to Mumbai and Hyderabad on an exclusive investment due diligence trip of small and private Indian companies. Now, more than ever, is the best time to take advantage of India’s new growth spurt.
Find out more about our findings in this MarketWatch.com, "Why Indian Stocks are a Buy Right Now."
Those interested in learning more about Mr. To’s research may contact him at: henry.to(at)cbcapital(dot)com.
About CB Capital
CB Capital Partners is a global financial advisory and investment firm, comprising four practices: asset management, investment banking, real estate advisory, and research. Our primary mission is to bring innovative and value-added solutions to our clientele through a conservative and disciplined application of our diverse professional institutional investment banking talents.
Since 2001, CB Capital Partners has leveraged our business acumen and network to bring innovative and value-added solutions through a conservative and disciplined process.
For more information please visit http://www.CBCapital.com.