From our international fund managers


Postcard from India


By Adrian Lim, Senior Investment Manager, Aberdeen Asian Equities


With a population of more than a billion, India is home to urban centres that are fast becoming tomorrow’s megacities. At the moment, these burgeoning metropolises are an enigmatic mish-mash of ancient shrines, kebab stands, colonial monuments, Mughal palaces, Hindu temples set next to Muslim mosques, slums juxtaposed against glass and steel towers. I am currently visiting a handful of companies at a stop-over in the capital of New Delhi. Its population of some 21 million can seem rather overwhelming at times. Travelling across its central business district from one corporate headquarters to the next takes one through many bustling city streets.


India has certainly come a long way.


Having climbed out of the third world to become the eighth-largest economy in the world, its GDP is approaching US$1.5 trillion. Much of its economy is domestically driven. With a population that is second only to China’s, its potential is staggering: nearly half are below the age of 25 and its fast-growing, educated middle class holds such promise. This also makes India a vibrant place to visit. And there are numerous well-run and fundamentally sound businesses that do look after and maintain shareholder value. What is important is constant scrutiny, a task I share with members of our Asian Equity team. We have had 15


years of experience investing in India and the companies we hold have established solid track records for transparency, accountability to shareholders, and demonstrated their ability to navigate through both good times and bad. But like many emerging markets, India will not be immune to a slowdown in global growth. The good news is that its GDP is still expected to expand by 7.6% in 2012 — a much faster pace than any of the projected growth rates for the developed world. With such a rosy outlook and a roster of well-managed companies, I look forward to visiting India for many more years — despite its cacophonous streets.


“India will not be immune to a slowdown in global growth. The good news is that its GDP is still expected to expand by 7.6% in 2012.”


23


Lotus Temple in New Delhi, India


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24