Here’s some news from Morgan Stanley [Financial Express article] – Indian equities generated the best returns in Asia over the the last ten years (2.26%), beating the China and the Asian Tigers all of who recorded negative returns. Pakistan was the top performer over the last five years (18.5%) beating Malaysia (16.5%) and India (15.6%). If Pakistan can transform its rivalry of India into the economic sphere, South Asia as a whole will be better off, for a Pakistan playing catch up will provide a much needed kick on the butt for India’s vaccillating economic reformers.
But Pakistan’s macro-economic performance must be taken with a pinch of salt, as it will find economic development elusive unless its political and security situation improves.
For the past few months, the international media has been carrying good news articles about India. This week’s Economist writes about the rising prosperity in India.
“Rolex”, says Mr Seth, with his profession’s knack for pithy hyperbole, “has replaced religion.”
… potentially of vast significance for a country as stratified as India, this is bringing about a “second unification”, in which the young and affluent across the country define themselves not just by caste, creed and language, but by a shared consumer culture, spread by television, which now reaches nearly half India’s homes. As a result, spending patterns are changing. The Economist
The days when CNN’s websites featured pictures of cows on Indian roads have changed – its the massive cubicles of BPO and call-centres that accompany articles on the Indian economy.