Jim Grant, Grant’s Interest Rate Observer founder and editor, shares his excitement over India’s economy and potential for growth.
the be so cautious is tire. so here and not especially helpful. i just returned from india. i’m now a world authority on india having been there for four days. reading your piece on india was pretty enlightening. they have elections coming up on april 7th and what really caught my attention is you say, and this is in the latest newsletter, for people who missed out on the investment opportunity that the reagan revolution, thatcher in great britain, even the german post-world war ii economic miracle represented, you think india could be that next great — i think it could be. i think the world is always looking for the next growth story and i would nominate india. i think china is fading on account of its truly frightening misallocation of credit. you know, india has got — it’s got an average — median population, i think age is 27 almost. europe’s is something like 44 or — mid-40s. india is confounding, flummoxing, exciting. it causes one to wish that somehow enlightened market related ideas had prevailed there about 100 years ago. yes, i think you still blame the british. for leaving their social — the british — they didn’t take their social with them. the fellow who now is leading in the polls for the balloting only begins last month. the announcement comes in may. but mr. modi is not so much a libertarian, but he is all about modernization, and he has policemened to give business a much freer hand. india has been in thrall to statism under every guise, socialism, gand hiism, neruism. the indians are expected to spend $5 billion u.s. on this election. that is seven times in proportion to population what americans spent in 2012 on federal election. that gives you an idea of the power of government to withhold and grant favors.Jim Grant