Economic model the world should follow

As you sit back and try to enjoy the markets you realise that investors both foreign and Indian are optimistic on the internal consumption story.

It looks like they are very happy and in awe of India and the growth India is achieving, without making investments in infrastructure and basic development. This is a model the world would like to adopt and implement. I believe, it will be a solution for all that ails the western world. You don’t need to have deficit spending to stimulate growth..

India is a perpetual machine. It does not need to be fed with any investment, development and planning. We in India don’t need roads and electricity. We don’t need to add more schools and don’t need to have sanitation and drinking water supply conditions to improve.

This is an engine which is throwing up incremental growth without requiring any incremental investments. It does not require you to do many things, hoping some of them would click.  It does not demand fine tuning of strategies and execution.

We surely are living in a golden era.

Obama can definitely win the next elections if he spends a couple of months in India and if he is able to grasp and accept that that the best thing to do, is to do nothing. Even better is to screw up things and the reverse momentum kicks in.

I cracked this, when I was observing the Indian and foreign investors behaviour in the current markets. I felt enlightened, and hence now I am enjoying it.

Investors think that Indians will eat more, may be many more Dominos Pizzas tomorrow and more of them will drive in cars and shop at Shoppers Stop and more frequently buy Bata Shoes. Private schools would do better. Investors may lose their shirt in the markets but they won’t forget to wear Jockey!

The investors are also convinced that India does not need to build roads, electricity plants, sanitation systems and ports. If they try to do so the economy would take the colour of the Western world or China and would get into recession. Most of these companies hence are available for asset stripping. These companies better not be there tomorrow. They would require and unnecessary government subsidy or a bailout.

As the commentators say, there are demographic dividends for tomorrow coming in from internal consumption multi baggers.

This ride, we will have to take in a helicopter. There are no hairpin turns, there are no bumpy roads either... hell, there are no roads!