Thoughts on future direction for India's economic activity

I dont think you need to change the focus. There are reasons why droves of medical tourists, or retirees dont land up in India - and I dont see our people changing - so why would the reasons which drive away foreigners suddenly change?

 I see India doing more of the same.

 1. IT outsourcing. For this our currency has to weaken. But business is mature and not a growth area.

 2. Movement from 500$ per annum to 2000$ per annum per capita GDP. This requires minimum of govt action and minimum of education - ALAS - even this minimum is being denied currently. But it will come and will produce the most opportunity for capitalists

 3. Change of land use norms. Currently India laws are too restrictive on usage of farm lands. Once the owner of the farm land is able to do whatever he wants with his own land - and this is coming sooner or later - it is inevitable - there will be huge opportunity for capitalists to start businesses without massive capital being needed only for land.

 4. Modernization of construction. We are still following 70 year old British norms. Once we see better techniques being adopted, there will be a construction revolution. This will provide massive "highly skilled and well paying" jobs i.e. 700-1000 Rs a day instead of 70-100 Rs a day as seen at present. Total number employed will reduce, but the income and productivity will rise. REIT/private equity will do well once the sector opens up.

 5. Small independent businesses at village/town level. This will be the biggest opportunity. Microfinance companies will do well. So will factory builders.

 6. Education and training - mainly in vocational for plumbers (working copper pipes), carpenters (using machine tools), masonry (precast precision machines handling), electricians (using modern modern equipment and switch gear), heavy earth moving machinery handling.

 Where the future good stock IPOs/growth stocks will come :

 1. REIT

 2. Vocational training Institute

 3. Earth mover rentals

 4. Construction firms

 5.Capital goods manufacturers

 6. Small machine tool manufacturers (better quality than current cheap Chinese machine tools)

 7. Tiles

 8. Structural materials

 9. Aluminium products and frames

 10. Electric fixtures

 Almost all of the above industries are currently in small scales in India. Economies of scale and large scale manufacturing of these will revolutionise the way of life in India making things cheap - and getting skilled workers in good numbers.