India is world’s biggest bright spot

INVESindecoAccording to Jeff Kleintop, chief investment strategist at Charles Schwab, India is doing everything right and setting itself up to be the next economic powerhouse.

Kleintop said the reason is that India has focused most of its growth on the services sector. Based on World Bank estimates of value added to GDP, 52.1% of value added to Indian GDP comes from that sector, while industry makes up just 30.1%.

Additionally the country has not been impacted by the downturn in commodities and manufacturing, and according to the World Bank India derives 23.6% of its GDP from exports.

All these factors are in addition to the population growth and relatively pro-business reforms, that have set the country up for success.

Kleintop says India’s success is replicable all over the world – it just has to be harnessed. By focusing efforts on continuing to grow services and paying it more attention he believes the US and other countries can continue the story of India’s success albeit more slowly.