Lehman Brothers Likely To Increase Indian Exposure

by Stewart Douglas

Story link: Lehman Brothers Likely To Increase Indian Exposure

Investment bank Lehman Brothers have today released a report suggesting the Indian economy could continue to see its double digit growth over the coming years, suggesting the bank was likely to continue to invest in the market over the foreseeable future.

In a report released today the bank said that increased wealth within the Indian economy would continue to provide more long term growth for the economy, as would external investments in traditionally strong markets, which analysts have taken to suggest could prompt Lehman Brothers and other investment banks to continue to invest in the growing Asian economy.

The report predicted that, like its rapidly expanding Asian counterpart China, India would continue to be a target for outside investment over the near future, whilst the gathering momentum of its domestic economy would likely continue to improve the outlook as a whole for investors.

The news comes in the wake of a realignment of Indian market status by fellow investment bank Merrill Lynch to highlight growing investment potential in Indian business, which may suggest a wider trend emerging towards significant capital investment over the coming years.

However the report did suggest that a significant slowdown in the US economy, which it projected over the next few years, could have a dramatic impact on Indian growth in the short term, as one of the nation’s main trading partners contributing substantially to its economic activity.

The US in particular has proved a substantial market for services, which India has thrived on in recent times solely as a result of cheaper labour and growing telecommunications technologies.

It remains to be seen to what extent the US market situation will have an impact on Indian economi growth, and indeed whether investment banks will continue increasing their expousre to Indian asset holdings.