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India a case of reverse imperialism: Forbes

TALWAR

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India is still labelled an emerging market, but the Forbes magazine has argued that the country's economy has already emerged. And as the economy spreads its wings, its companies are turning to new international markets, perhaps beginning a reverse imperialism.

For proof, the US business magazine lists not only the recent high profile acquisitions by Indian firms, but also facts such as four of the top 10 billionaires in the world are Indian, and that with an annualised five-year total return of 42.2 percent, India comes second after Brazil in terms of the growth of the world's largest public companies.

In comparison, the growth percentage in Britain and the US are 17.1 per cent and 11.1 per cent respectively, indicating that the balance of economic power in the world is starting to shift, the magazine said in a commentary piece in its latest issue on Friday.
Business expansion
The reason for this reversal of fortunes is that for established companies in the US and Britain it is difficult to grow as quickly as those expanding from nothing, as is the case for start-ups in India.

During the 18th century, when the British colonised India and started exploiting the subcontinent's vast natural resources and to expand trade, tea became an important commodity and came to symbolise British colonial rule.

In a case of reverse imperialism, Tata Tea, part of the diversified Tata Group, bought Tetley, Britain's largest tea company, in 2000. Tata Tea has since become the second largest tea manufacturer in the world by volume, surpassed only by Unilever, based in London and Rotterdam.
Indian companies going global
This March, in another example of British brands being picked up by an old colony, Tata Motors acquired Jaguar and Land Rover from Ford for $2.3 billion. Tata Motors hopes the acquisitions will boost its ability to be a "meaningful player" in the global market.

India's monetary muscle is strengthened by a cheap domestic labour market and its companies' high price-to-earnings ratios, the magazine quoted Tarun Khanna, a professor at Harvard Business School, as saying.

The author of "Billions of Entrepreneurs: How China and India Are Reshaping Their Futures and Yours" added: "Unlike China where companies are state- and government-led, in India, it is people's own money."

Now even smaller Indian companies are able to collaborate with bigger counterparts in other markets - even those in other former colonies.

Last week India's biggest telecom firm, Bharti Airtel, called off merger talks with South Africa's largest provider of cellphone service, MTN Group, because of disagreements over the deal's terms.

Promptly, Reliance Communications, India's second largest telecom firm, entered talks with MTN. The potential MTN-Reliance merger will result in over 100 million customers, a network larger than that of AT&T, the largest in the US.

The shared colonial past, actually, is an advantage for Indian companies, Khanna told Forbes. "Imperialism is laying the seeds of global chess with Indian companies naturally capitalising on their shared history," he said.
 
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Feels great to see people recognising the emergance of India....so India and China are no longer developing countries...they are transforming countries!!:victory:
 
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Hey gr8 news, its acceptance of emerging (emerged) India, but it will be really gr8 if you can provide the source url please:cheers:
 
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India and china are for sure giants but You cant have it both ways you cant
claim to say we are the giant and yet at the same time time have the cheap labor.you see cheap labor is an advantage for emerging nations over the already developed nations.
Forbes magazine is simply smoking wacky tobacy when they don't even no the simple difference.
That link you put up isnt forbes magazine thats a NDTV blog.
 
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India and china are for sure giants but You cant have it both ways you cant
claim to say we are the giant and yet at the same time time have the cheap labor.you see cheap labor is an advantage for emerging nations over the already developed nations.
Forbes magazine is simply smoking wacky tobacy when they don't even no the simple difference.
That link you put up isnt forbes magazine thats a NDTV blog.

I didn't want to burst the bubble but you did! :whistle:

India and China are emerging markets like many other countries but an example of Reverse Imperialism....No Way!
 
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I didn't want to burst the bubble but you did! :whistle:

India and China are emerging markets like many other countries but an example of Reverse Imperialism....No Way!

Little bit of Google would have helped, here is the link to original article in Forbes.

A Case Of Reverse Imperialism
Benjamin Willson 06.06.08, 7:00 PM ET

Beware India's manifest destiny.

Though still labeled an emerging market, one could argue that the Indian economy has already emerged. According to Forbes' list of international billionaires, four of the top 10 are Indian. And with an annualized five-year total return of 42.2%, Forbes ranked India second after Brazil in its assessment of the growth of the world's largest public companies. The U.K., with a growth percentage of 17.1%, and the U.S., with 11.1%, occupy two of the last three spots on that list. The balance of power is starting to shift.

This discrepancy is understandable given the context; it is more difficult for established companies in the U.S. and U.K. to grow as quickly as those expanding from nothing, as is the case for start-up companies in India. Nevertheless, these figures highlight an important trend. As the Indian economy continues to spread its wings, its companies are turning to new international markets.

Could this be the beginning of a reverse imperialism?

During the 18th century, the British first annexed and then colonized India, seeking to exploit the subcontinent's vast natural resources and to expand trade. Tea became an important commodity and came to symbolize British colonial rule.

How times have changed.


In 2000, Tata Tea--a member of India's Tata Group conglomerate of 27 publicly listed companies--bought Tetley, the U.K.'s largest tea company. Tata Tea now represents the second largest tea manufacturer in the world by volume, surpassed only by London- and Rotterdam-based Unilever.

What is driving India's expansion? "Unlike China where companies are state- and government-led, in India, it is people's own money," says Tarun Khanna, a professor at Harvard Business School and author of Billions of Entrepreneurs: How China and India Are Reshaping Their Futures and Yours.

In March, another subsidiary of the Tata Group, Tata Motors (nyse: TTM - news - people ), acquired Jaguar and Land Rover from Ford Motor (nyse: F - news - people ) for $2.3 billion. It's another example of originally-British brands being scooped up by an old colonial friend. While the two brands will continue to follow their own business plans, Tata Motors hopes they will boost the company's ability to be a "meaningful player in the global market," says Debasis Ray, head of corporate communications at Tata Motors.

The company recently unveiled its Nano model in New Delhi. Touted as "the people's car," the small four-seater with a price tag of $2,500 is said to be the least expensive car in the world.

The monetary muscle behind the quest for new horizons is fuelled by a cheap domestic labor market and Indian companies' high price-to-earnings ratios, according to Khanna. Smaller Indian companies can more easily collaborate with bigger counterparts in other markets--even those in other former colonies.

Last week India's biggest telecom, Bharti Airtel, called off merger talks with South Africa's largest provider of cellphone service, MTN Group, citing disagreements over the terms of the deal. Reliance Communications, India's second-largest telecom, subsequently announced it was entering talks with the South African company. A resulting MTN-Reliance merger would result in over 100 million customers, a larger network than AT&T.

The shared colonial past, actually, is an advantage. The British Empire, Khanna believes, created a legacy whose repercussions are felt in India and in Africa's eastern and southern regions. "Imperialism is laying the seeds of global chess, with Indian companies naturally capitalizing on their shared history," he says.

Perhaps other nations should prepare for a new breed of imperialism. This time, we will be pouring the tea.

A Case Of Reverse Imperialism - Forbes.com
 
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India and china are for sure giants but You cant have it both ways you cant
claim to say we are the giant and yet at the same time time have the cheap labor.you see cheap labor is an advantage for emerging nations over the already developed nations.
Forbes magazine is simply smoking wacky tobacy when they don't even no the simple difference.
That link you put up isnt forbes magazine thats a NDTV blog.

Did forbes say that cheap labor is not an advantage for India ? Ofcousrse it is, so is it for other asian countries but they have not managed to get this growth rate.
Do you konw what a blog is ?
Btw, the forbes link is posted for you by another member !
 
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TALWAR;163898]Did forbes say that cheap labor is not an advantage for India ? Ofcousrse it is, so is it for other asian countries but they have not managed to get this growth rate
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HA ha ha politics is a big bad game thats played on world markets every day If it wasn't for the fact that john Howard(ex Aussie prime minister) convince the Americans to create an equal to china you couldn't have managed 12 bananas Actually you could thank the chinese for that.

Do you konw what a blog is ?

DUHhhhhhhhhhhhh
Btw, the forbes link is posted for you by another member
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i believe i said forbes people are smoking whacky tobacy that still stands.
 
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Look modern Imperialism is quite different from the imperialism of the past.

Today's imperialists exert their influence by "soft" means rather than "hard" ones.

Influence is exerted through economic, cultural, and political channels.
 
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