INDIA WILL BE THIRD LARGEST ECONOMY BY 2050 said: MR. AJAY BAGGA, Managing Director & Head Private Wealth Management at Deutsche Bank, India

Strong Economic growth, Young Population, Better Industrial and Business Environment, Stable political structure, Optimistic environment are the key factors that provide better Investment Opportunities in India said Mr. Ajay Bagga, Managing Director & Head Private Wealth Management at Deutsche Bank, India. Mr.Ajay Bagga was addressing the members of Ludhiana Management Association on the topic "Investment Outlook in Changing World" at hotel Majestic Park Plaza. Mr.V.K.Goyal, President, Ludhiana Management Association, Dr K.N.S.Kang, General Secretary, LMA, dignitaries from business, academicians and members of the association were also present on the occasion.

Dr.K.N.S.Kang, General Secretary, Ludhiana Management Association said that markets are quite optimistic and bullish, shows the Investors trust in India and its business. He said that India will become third largest economy by 2050 but whether India will be prosperous country ( In terms of per capita Income) is big question in front of economist and politicians. He further said that the fallout from past years' excesses have resulted in many previously prominent players disappearing, combination of others, and a retrenchment among many with respect to certain activities. These changes, combined with evolving investment opportunities, will undoubtedly pro-vide an opening for new entrants to capture emerging opportunities and for nimble incumbents to stake out new ground in the changed world.

Mr.Ajay Bagga, while speaking on the occasion said that world economy is again revesting to mean after 300 yrs of European and US dominance. He quoted that global economy is 55 trillion$ on the basis of PPP followed by US at 7trillion $. India is fourth at 3,2 Trillion $. He further said that India with 18% of the population is having 2% of world GDP, while US and China having 5% and 22% of the world population have 28% and 5% of world GDP respectively.

He said that china is getting older very fast and will find labour shortage while India has 300-500 million population less than 25 yrs of age (young Age). Every Year 2 million Young India will join the working Pool. He said that by 2050 China will have 44.5 trillion$ economy followed by US having 35.2 trillion $ and India will stand third with 27.8trillion $ in world economy. He further highlighted that Indian business is progressing very fast , quoted the cases of Vodaphone and Tata Nano, that how these companies have created competitive advantage through Innovation and Creativity.

Mr. Ajay remarked that in India 24% of the market is owned by FII that shows strong Investment opportunities in India. He further said that growth in the country is mainly governed by higher Income, higher savings, Higher Investments and Higher employment opportunities. But the biggest hurdle will be the politician and bureaucrats who can slower the pace of the growth because of their own vested interests. He said that in the last 5years GDP increased three times while markets grown nine times and the same trend will go in the near future as well. While Forecasting India he said that by Dec 2010 markets will reach 22,000, Oil Prices will rise and Rs will get stronger as compared to dollar which will provide better Investment opportunity for the country.

Mr.V.K.Goyal, President, Ludhiana Management Association, while giving his presidential remarks said that it is a fact the larger Majority of the youth is going to come to the markets, but had we got enough jobs to absorb them. Had we got good educational system to develop them needs to be answered He further said that optimistic environment is created by 8% growth, larger employment opportunities, increasing Trust of overseas players in India. He further said that healthy Investment opportunities will come from strong and stable Political and good governance.Mr. Goyal said that the focus of business houses in the changed world from Investment point of view will be on three areas: increasing direct private equity investment activities across both developed and emerging markets
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