Is it safe to invest in India & China now?

Question

I am running a pharmaceuticals consulting firm which provides services in the pharmaceutical companies. I am thinking to open an office in India and China. I am not sure if it will be a great idea to invest those countires yet? Please send your comments.

Thanks,
M. Chowdhury
www.amreteckpharma.com
www.amreteck.com

Answer 1

There are no safe investments.

But India and China offer opportunities that you will find it hard to match elsewhere. Both countries have growth rates considerably higher than those of developed countries. Both have a great work ethic. And both are hungry to excel.

I have invested heavily in both and continue to add to those investments when the opportunity arises.

An additional consideration is the currency consideration. The U S dollar is not doing well. By diversifying your currency investments, you are hedging your bets.

Answer 2

Please explain "invest". I respond from the American point of view. And, you're asking about two different type lifestyles and currencies and the currency exchanges are different between China and USA and India and the USA.

If you are an American looking for inexpensive labor then it's ok to have Indian workers; that way both you and they will make money. If you're looking to sell there and make money from what you sell, then don't do it because of the currency exchange or you'll lose money. If you plan to consult there then forget that too as ideas and ways of thinking are different than here, and you won't get paid because talk is just talk to Indians.

Investing in China is totally different in that the way each helps each other is for an idea to come from the USA and be made in China. The currency is different there and they have a lot of workers, so to make a product is cheaper and both make money that way. Consulting there, I think not, and, they have their own herbs there and would not, in my opinion, be interested in pharmaceuticals, nor could the average person afford them.

Answer 3

You can open offices in those countries safely. There are issues.

China is well known for stealing intellectual property. If you have any important patents, procedures or other intellectual property items you want to remain safe, keep them out of China. They don't exact follow Pantent Laws.

China is also communist. If they ever decide to go to war with the US in the future I would bet you would obviously lose some property/money tied up there. But if your company is just using cheap labour and getting new customers in China than there is no harm doing business there. I'm just warning you, they are a communist nation and they will eventually be a world power (not that they arn't already). Ever read the bible..."the kings of the east will rise" "200 million man army" Something to those affects. I'd open a sales office or an office to outsource work to China. I would not invest all my money in Chinese companies or build a factory to manufacture my brand new technology that is patent protected, unless you don't care about IP theft.

But hey, everyone will call me an idiot, so don't listen to me. Just remember, this is a world with FINITE resources where people and countries have INFINITE wants and desires. Conflict in the future is a possibility, it always has been.

Answer 4

I would say that India is a sure bet right now, China as well. Though you should remember, that one day, the system China uses will collapse. But that's probably far enough into the future to not be an issue at all. Not sure why I even brought it up. India and China are fast developing countries, and China is becoming a world superpower. A good idea to invest in them.

Answer 5

India is a no presently because of tensions with Pakistan being on the rise...China is always a good play/bet. PEACE!

Answer 6

Read all the articles on msn.money by Jim Jubak, then you will have your answer about East Asia.

Answer 7

yes