India mirrors China 20 years ago, driving Europe and the USA to strengthen ties with it

Anton Panayotov, Vice Chairman of the Bulgarian Business Leaders Forum and CEO of Alaric Securities, on “Business Start”

India is presently extremely attractive to businesses from Europe, as the country is experiencing significant growth and offers numerous development opportunities in key sectors. Urbanization is a major focus in the Asian nation, with plans to construct 120 airports over the next 10 years. India aims to improve its connectivity and infrastructure, and the EU can contribute with its companies and technologies, commented Anton Panayotov, Vice Chairman of the Bulgarian Business Leaders Forum and Founder and CEO of Alaric Securities, on the “Business Start” program with host Hristo Nikolov.

Challenges and Investment Landscape in India

One of the challenges of investing in India is the high tariffs, which make European products uncompetitive. Panayotov explained that the country is attracting substantial capital, which many entrepreneurs are targeting. India is often perceived as a land of stark contrasts and social inequality. Panayotov acknowledged these perceptions but clarified that social inequality does not create social tension in the country. He added that India’s development can be compared to China’s 20 years ago, making it crucial for global investors.

Vibrant Stock Market Dynamics and Investment Options in India

India’s stock exchanges are exceptionally well-developed. The volume of derivatives traded is only 2% below that of the US, and about one-third of this trading is conducted by retail investors. The market is also witnessing a high demand for company listings. For foreign investors, there are various options, including ETFs.

“Public companies in India face a similar challenge as public companies in Bulgaria. Conglomerates and owners release a small number of shares—around 2-3-5% of the volume—and use the valuation to secure loans against their assets. This is not conducive to legitimate corporate transparency, which investors always seek. In the absence of shareholder influence over a company’s management, systemic risk remains within the company, and consequently, the risk persists across the entire composite ETF.”

Watch the full commentary in the video.

Source: BloombergTV Bulgaria