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India’s Investment Risks: Infrastructure to Corruption

India’s Investment Risks: Infrastructure to Corruption

The author expresses concerns about long-term equity investing in India due to issues such as poor infrastructure, pollution, loose law enforcement, and unsustainable practices. Despite these worries, they acknowledge that India has improved in many areas and has potential for growth in sectors like power, home appliances, food products, and more. However, they also highlight concerns about corruption, regulatory institutions, and loss-making companies routinely IPOing, which make retail investors feel helpless.

Despite these challenges, the author believes in India’s long-term growth potential, citing its large population and the growth of bank accounts, smartphones, UPI, and 5G. They recommend focusing on good sectors and themes for investment rather than specific stocks. The author suggests that India’s situation has been worse in the past, and investors should remain optimistic and patient, as those who have done so in previous decades have been successful.

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