Wednesday, June 07, 2006

India Trip and Rapid Growth Observed

Just came back from India after attending my brother´s wedding. I was in India in November 2005, I was really impressed to see the development that has happened in the last 6 months. The real estate prices have shot out of the roof mainly in commerical/IT park development projects. The GDP grew at 8.4% in the first quarter of 2006, impressive rate given that Indian economy has been growing at that pace for the last couple of years.

Things worth noting are the establishment of the Intellectual Capital Office to enable patent filing by the Indian Federal Goverment is being applauded by the Global community, much different than what is being seen in China... where property rights exists only for those within the communist government. I was listening to a broadcast today by the BBC about the non-existance of property rights for farmers in China where the government took over a farm land against the wish of the farmer and the land was auctioned. The farmer is pretty sure that he would loose the case in the court of law as he is suing the government. Given the above background I find it strange that China is viewed as the darling of the investment community and not India... only time will tell which model is more successful

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