COIMBATORE: India's top companies+ are set to outperform their Chinese peers despite the country's infrastructure bottlenecks, according to two reports published by S&P Global Ratings on Tuesday.
"Our analysis of India's top 200 companies by market capitalisation against their Chinese counterparts shows that government influence is far greater for listed companies in China than in India," said S&P Global Ratings credit analyst Mehul Sukkawala.
"This directly affects companies' flexibility to reduce capital spending, generally results in weaker profitability, and eventually shows up in higher leverage," he said.
Indian private companies outperform both the Indian government-related entities (GREs) and Chinese companies by registering the highest and relatively stable returns.
"In our view, poor infrastructure is among the biggest hurdles facing the Indian government's ambitious 'Make in India' programme that aims at turning the country into a top global manufacturing destination," it said. "Besides, robust infrastructure development can provide a boost to many sectors, including steel, cement, auto, and real estate," the agency said.
transport infrastructure is something that cannot be upgraded overnight. Someone like Modi should have led India in 90s. However, Better late then never!
MNCs, Western capitalists thoroughly exploited China - it''s bonded labour, it''s natural resources, environment and ecology. After exhausting everything in China, they now focus to India, as if the Opium Trade changes it''s centroid. It appears that India, willingly, is walking straight into the trap! I wish the Bharatabhagybidhata interferes in the right time.
Overall China is 11 trillion $ economy and we are just 2 trillion .the difference is nearly same as of India and pakistan. we have to go a long way to catch China
Hope things would improve in next decade or so in India?
Indian companies with support of worst government support and infrastructure can do so much well in competitive markets, i wonder how far they will be if the conditions become most favourable. Modi''s promises and government performance is both lacking far behind.
Naveen Kasyap Kambhatla
the growth in China is due to the emphasis on development of Infrastructure, which was neglected by the previous govts. The current govt. is doing a commendable job in improving the infrastructure there by decreasing the unemployment rate as well
If things remain moving in right direction & Modi get another 5 year term,India would have not only better infrastructure but an economy worth 10tr.$ followed by India''s goods/services exports 1tr.$.
China is way ahead in all aspects but the recent bullying by China with regards to the South China sea may be its undoing and a golden chance for India to fill in.
india would soon catch up with the China in all economic development. if we need long term development then we need Modi Ji for longer period.... Way to go...
Reminds of an old saying. "Bull-sh*t may get you to the top, but it won''t keep you there!" The Chinese have got to the top by producing cheap products, using child labor and unskilled labor. Now that the GST has been passed, it''s only a matter of time before the manufacturing process starts shifting to India!
Modi should RULE ANOTHER
Modi should win for another 5 years