Back in December, when Michael, Mitchell, and George were making their predictions for 2006, I took a slightly different approach.
In my editorial, Top 8 International Economies to Watch in 2006, I pointed PROFIT CONFIDENTIAL readers to India, an often overlooked, but growing, economic power.
Here’s a recap of what I had written on India in that column: Many economists say India is the “new China,” and I have to agree. Multinational companies are moving operations to India in droves thanks to the population’s talents and the fact that labor there is cheap. The economy will see the benefits of such corporate strategies. The stock market in India is booming, the retail sector is anticipated to be hot next year, and the World Bank expects the country’s economy to grow by eight percent in 2006. Clearly, a lot of economists will be watching what happens in the New Year in India.
Yesterday, these Indian economy watchers got some good news. The country is set to award four companies with contracts to privatize and revamp its two major airports.
The Mumbai airport will be renovated by Indian company GVK Industries Ltd. and South African Airports Co. The airport in New Delhi, on the other hand, will be updated by India’s GMR Infrastructure Ltd., with help from the German airport company Fraport AG.
In recent months, many economists have noted that India’s infrastructure stands in the way of its ultimate economic expansion. Crowded airports and limited flights have bottlenecked the area’s transportation system, and this is certainly limiting the country’s potential for growth.
With the airport contracts announced, it looks like India’s infrastructure will finally be getting the attention it has needed and deserved for some time now. New airports, new roads, new power generating plants… the new contracts are the start of great things for India’s growing economy.