Anil K Gupta, emerging market expert, opines that the prospects for emerging markets aren’t that bad and the reasons are:
This means that, even in 2015, emerging markets will grow at twice the pace of developed markets. Even after factoring in currency depreciations, their share of the global economy continues to rise year after year. According to the IMF, in 2000 it stood at 21%. This year, it will be almost double — 40%. By 2020, it’ll be 44% and, by 2025, close to 50%. If you want growth, you have no choice but to engage with emerging markets.
The other big reason for longer-term optimism lies in the major structural changes underway in emerging markets.
The population is young. Africa is 10 years younger than the world average. India is nearly 20 years younger than Europe or Japan, and nearly 10 years younger than the U.S. This young population is becoming more literate, informed, ambitious, and entrepreneurial. It’s also more urban. By every measure, on every continent on earth (including sub-Saharan Africa), the quality of both governance and infrastructure is better than it was 10 years ago and getting better.
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Dr. Anil K Gupta
Dr. Anil K Gupta outlines how companies can leverage the market and the resource opportunities presented by the China and India phenomenon to achieve global dominance within their particular industries. He also talks about the key questions that business leaders must address in order to develop winning strategies to go global and to transform global presence into global advantage.
Dr. Anil Gupta’s book “Getting China and India Right” is the first strategic guide for multi-national corporations (MNCs) which are interested in expanding into both China and India. Gupta and Wang explain how many MNCs view China and India solely from the lens of off-shoring and cost-reduction, and how they focus their marketing strategies on only the top 5-10% of the population. This is a missed opportunity. China and India are the only two countries that constitute four realities that are strategically crucial for the global enterprises:
* Both are the fastest growing economies in the world. In recent years, China and India have accounted for over 25% of the growth in the world GDP
* Both are two of the world’s lowest cost platforms for both blue and white collar work
* Both are becoming hot beds of innovation to boost a company’s innovation capabilities
* Both are springboards for the emergence of new ambitious and highly capable global competitors (for instance, Tata Motors and Infosys Technologies in India, and BYD Auto and Huawei Technologies in China)