The Silicon Valley of India: Bangalore

Honestly, I have never been to any part of India before, beside our Little India in Singapore. But I have plans to visit India one day, not just for the romantic & famous Taj Mahal, but because the country is fast becoming an economic juggernaut. Consider:

1. India's GDP has been expanding at more than 8% annually for the last three years;
2. The country is now the fifth-largest economy in the world, ranking above France, Italy, the United Kingdom, & Russia;
3. It has the third-largest GDP in all of Asia.

There are a lot of reasons for India's rise to prominence. For starters, the country has a highly educated & productive workforce. That is helping per-capita income rise rapidly, creating a new & large middle class with money to spend. India also has a strong judicial system & vibrant capital markets. The National Stock Exchange & the Bombay Stock Exchange are the third & fifth largest markets, respectively, in Asia.

But here's why I think India's best days are still ahead: It has the second-largest English-speaking population in the world. China, Taiwan, Japan, South Korea, & Russia are producing herds of science and engineering graduates every year. Yet none have the English skills that Indians do.

This is why India is rapidly becoming a global technology powerhouse. It is also why U.S. companies are moving many of their support services to India. In fact, once you understand this single critical advantage, you can't help but get excited about the potential of India. Truth is, most of Asia IT support has also been outsourced largely to Chennai & Bangalore.

Today, Bangalore has 6.1 million residents. She is the third-largest city in the country, & is touted as the Silicon Valley of India. And for one thing, the hotel prices there are not cheap. Such high hotel prices are not from a shortage of rooms. It is because of the steady stream of U.S. & European companies visiting the area to tap into its low-cost, high-output scientific workforce. So naturally, my future trip to India will not be cheap, if I want to bunk into a 5-star facility.

On the other hand, with regards to their stock market, I expect them to be relatively cheap still. Why? Because despite last year's correction & then all the gangbuster growth, attention & expansion, the average Indian stock is selling for only 15 times earnings! Hence, I think India offers more bang for your investment buck than most other places in the world. In fact, I am more sanguine in this part of Asia than in China now, given their current madness in punting the stock market. In short, there is still juice to be squeeze!

But, as always, stay safe & don't rush in too soon. Market has a way of correcting itself without warning & mercy. Wait for the hot & spicy curry to cool a bit lah, Ah-deh! Don't burn your tongue & wallet this way. And don't say I never say, okay Thumby!