A recent study shows that Indians do about 4% points better than the Chinese as a return on investment. The scarcity of capital in the country has forced businesses to be more efficient. The return on investment for Indian companies is likely to improve further as we move up in providing higher value-add products and services and as the current inefficiencies in the system are worked out. Over the long term such a trend could translate into much higher levels of wealth creation.
However, the study has in all probability covered only public (and well established companies). Young and potentially next generation of public companies starved of capital would have to pay in terms of time to achieve scale/ breakeven/ profitability/ sustainability. Which could have a negative impact on the growth of the economy.
1 comment:
I went to payday loans and got approved. It was so much easier than I thought.
Post a Comment