In the long run I would think she is more likely to be better off than she is to be worse off imo. Obviously being an accountant she'll be able to really crunch the numbers and know what she's buying when the company have some genuine revenue coming in.
A lot of people have been hesitant about NSL over the years for many reasons, such as
- India having a perceived (possibly justified in some cases) reputation for corruption, something that they are working hard on improving
- High barriers to entry, something that Andhra Pradesh have worked hard on since 2014, resulting in them becoming the easiest state to do business in
- Low GDP, this has improved in recent years, since the election of Prime Minister Modi
- Previously failed projects and failure to establish revenue generating activities
As soon as a lot of people see India, they scroll straight past. They don't know the current economic climate, the current Government, the changes in policy or in our case the fact that bifurcation allowed to essentially work on building an entirely new state/entity separate from Telangana.
The country is changing, the Government are opening up to trade, increasingly working with Chinese companies despite tension between the two largest populations in the world and trying hard to drive up FDI in order to increase the money flowing into their country.
There are still risks in India and specifically Andhra Pradesh.
- Maoists appear to attack regularly, especially between Odisha and Andhra Pradesh.
- Diseases still spread easily due to low sanitary conditions in large parts of the country, such as cases of Swine flu recently popping up
- Water is a big concern in parts of the country for irrigation of crops and supply to villages
- CM Naidu has had threats upon his life, in fact he survived an attempted assassination in the past
- Governments can change and this can disrupt exisiting relationships and progress
- India and Pakistan is a dangerous issue that could eventually boil over into mutual destruction of not only India and Pakistan but the whole world of if a large portion of their nuclear arms stockpiles were used. (Not worth worrying about as stocks would no longer matter)
As for NSL, we are based in the fastest growing Southern State, the state which is being coined the gateway to the East, due to its long coasts, enticing investment environment and the Governments willingness to do what ever it takes to drive FDI into the state.
Huge LNG terminal, railways, cities, roads, buildings and infrastructure are going to drive demand for well priced local steel and by extension well priced high grade iron ore. We are extremely well positioned at what is likely to be a 20 year expansion across India, lifting more and more people out of poverty and into the middle class.
China are heading in the opposite direction right now in terms of steel supply, they are trying to merge companies, cut down on output, have banned any new projects of expansions and are doing their best to reduce their supply. They are also encouraging Chinese companies to setup shop within other countries in order to reduce the need for everything to be built directly in China and reduce their share of the CO2 blame, especially the smog in Beijing.
Although this may drive down iron ore prices internationally in 5-10 years, it will further enable growth in the India iron ore and steel markets.
Anyone who takes the times to research India, to research NSL and see what they have achieved over the past two years and see what they are going to achieve over the next 10 will imo be very well off. Your accountant may regret the short term entry, but long term I think she will be extremely happy for it.
All imo, and sorry if it rambles at all as I just wrote it on my phone.
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