NetZealous LLC grouth in Asia

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• Publié par: netzealousllc1
• Publié le: 23 juin 2016
• Nombre de lectures: 0
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

 Asia, the continent on which the world’s attention has been
riveted for a while now, is justified in being in a position of
importance from the perspective of the world powers for a good
number of reasons. Asia is the world’s fastest growing continent.
 It is now set to enter what analysts are hailing as record growth
figures. It is the most populated continent on the planet, with the
most number of people with spending power.  It is also home to two countries, two giants if you like –China and
India –which house more than a third of the world’s population,
and are two economies with the fastest growth rates in the world.
 What makes Asia particularly interesting and enticing for those
interested in areas like pharmaceuticals, healthcare and medical
devices is that the diverse economies represent a healthy blend
of opportunities.
 While China is among the world’s largest markets for medical
devices and is growing at 20% a year, over three times that of the
US market; the Indian economy is home to some of the world’s
leading brains and investments in pharmaceuticals.  When viewed as a whole, the Asian continent may sound
promising from the macro perspective, but seen at the level of
individual economies, the Asian story is not without its challenges.
Because of the demographic nature of the leading economies of
Asia, there is likely to be shift in the locus of growth.
 Consider this important fact: In China and Japan, the productive
population is going to age in the next couple of decades or so.  At this stage, it is difficult to predict what levels of productivity the
fresh blood that is going to take its place is likely to bring.
 Moreover, a sociopolitical policy of seminal importance to the
Chinese economy, the One Child Policy, is likely to continue for
some more time and could stabilize the population.
 Its impact on the productive population is not very clear at this
point of time.
 The Chinese economy is also showing signs of a relative
slowdown. The rest of the world is concerned that the Chinese
slowdown could bring the record-breaking growth levels seen
over the past three decades or more –over 7.5% annually, could
come to down to five percent.
 Even this growth rate is enviable by the current world growth
standards; but when this happens in the world’s most populated
country and second biggest economy, the world sits up and takes
notice.
 A more important aspect of this worry is the reason for the
slowdown. This is believed to be the spinoff of the steps being
taken by the Chinese government to change the very drivers of
the economy. It is taking steps to reduce dependence on exports
as an agent of growth and make the economy more driven by
internal, domestic consumption.
 When an economy of this size and population takes monumental
decisions of this nature; it is sure to have major implications for
world trade.
 That brings the next major Asian economy, India, into focus. At a
time when these tectonic shifts are likely to unfold in China, India
is projected as the one that is likely to challenge and probably
even take its position as a manufacturing hub at some point of
time in the future. India’s new government, which took office
about a couple of years back, is completely growth-driven.
 Its Prime Minister, Narendra Modi, is a man on the move, working
with a CEO-like zeal to pump up the economy. His government’s
major initiatives, such as Make in India, are offering investment
opportunities in manufacturing with open arms.  If the Indian economy could address its traditional barriers to
business, such as slow or low levels of policy implementation,
corruption and a sluggish bureaucracy, all of which are seen as
major impeding factors to business, we could see the emergence
of India in a new avatar
 As the Indian economy grows to take up these challenges, it is
likely to bank on its existing advantages to press the growth
pedal. India has a sizeable population –numbering a few million –
with good working knowledge of English, the connecting
language of the world economy. It also has a huge technically
qualified population that can take up manufacturing jobs with
ease.