Monday, March 9, 2015

India has a huge bureacracy

Basically the current [Indian] government has already implemented numeric reforms and I am sure that Narendra Modi [India Prime Minister] would proceed at a much faster pace and implement further reforms if he could. However, in India we have to deal with an incredible bureaucracy and so it is not that easy to implement everything you want. 

In the US, Ronald Reagan also wanted to cut down the bureaucracy and he only managed to do that to a very small extent. So it is a tough job but I think the overall economy is okay. 

In the meantime, the share market has gone up a lot over the last 12 months and the valuations are in most cases no longer terribly compelling. I just looked at Nestle India , it is selling at close to 50 times earnings. So everything has to move in the right direction to justify these valuations.