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To: microhoogle! who wrote (76672)12/21/2006 10:53:48 AM
From: Paul Senior  Respond to of 206323
 
"Political risks, corruption, hostile neighbourhood (thereby proximity to terrorist bases), gap between rich, middle class and poor, AIDs growth might stifle some luster"

I live in the USA where the environment is somewhat similar. I invest in the USA, so I'm not so deterred from investing in India.



To: microhoogle! who wrote (76672)12/21/2006 3:45:16 PM
From: Siva Uppalapati  Respond to of 206323
 
Investing is to a certain extent, quantifying the risk factors and then investing if the odds are in the investors favor.

So let us see if we can quantify them
(of course there is a lot of subjectivity in these type or analysis).
The risks you pointed out.

Political risk -- Please elaborate what these are.
I am not sure how to quantify these.

Corruption -- Not a significant risk in my opinion.
What we see in india is petty corruption,
but at the top level, it is low.
Hostile Neighborhood--
With US in Afghanistan and Pakistan there is less risk of any major conflict.
Also China focusing on economy instead of a real war, there is less risk.

Gap between rich and poor--
not significant risk in my opinion.
AIDS--
the raw numbers look big, but percentage wise they are very low. In a 1.1B population the aids infected people are about 5 million. So more than 99.54% population is currently not affected.

>Despite stable economy, mature electorate, incremental >progress there are still certain risks inherent in India. >Political risks, corruption, hostile neighbourhood (thereby >proximity to terrorist bases), gap between rich, middle >class and poor, AIDs growth might stifle some luster (that >the country richly deserves) out.