Anil Chaturvedi was given the assignment within bank to connect Europe with India. India has started opening up and we see there was an opportunity for tremendous growth.
Through some research he found that people in Europe and in the US also the there was a lot of disinformation about India about what is happening in India of what potential thr nation has. There are couple of factors which really highlight why India is a market for anybody to look at considered investing and doing business in the nation says Anil. Trying to connect European companies to India he states how India currently has a middle class population of between 400 to 500 million people. This population today has the same capacity to purchase goods, consumer discretionary, and other goods which anybody in Europe or America has. Compared to the population of Europe and America we are looking at transforming India into a potential consumer market to make a profit. Especially when the population is growing 12% per year.
Europe is going through a period of recession through Anil and his observation and that most companies there are generating returns of about 3% or 4% returns. In the best case scenario an Indian company today will not accept any new project unless we see an internal rate of return between 15 to 20%. With the new government in place the level of stability increases with better focus on the economy and politics. India got a government for the first time in about 45 years when they had a single parliamentary party which has a majority in the Parliament previous governments were all coalition governments in their head would depend upon several communal and local parties which is not the case nowadays.
The law ran very well do it this was not possible idea that makes a very big difference and that brings in a lot of strength. One more factor is India’s foreign currency reserves they are among the top player in the world. They are ahead of Germany, Italy France, the UK with a foreign currency of over 360 billion dollars Anil believes India is a force to be reckoned with and necessary asset to other countries growth.