The world still underestimates the influence of India's infrastructure demand over the next 3-5 years, says expert

CEMENT, coal and indus trial metals producers across Asia will benefit in coming years from a mas sive push by India to over haul its infrastructure, a fund manager at JPMorgan Asset Management said on Tuesday.
Joshua Tay, who over sees $4 billion in Asian stocks says infrastructure investments by India, Asia's third largest economy, will provide another major driv er for these markets, follow ing huge investments by China in recent years.
Bloomberg "I think the world still underestimates the influ ence of India's demand over the next 3-5 years given the amount of infra structure required," Tay told Reuters. "There will be a lot more demand for coal, steel, aluminium. I don't think it's been factored into most people's outlooks.
"There will be a huge shortfall in coal, given the amount of power plants that are being built or will be built in India."
Engineering conglomerate Larsen & Toubro is an example of a firm which should benefit, Tay said but declined to give other names. "We are moving into the commodity stocks, steel and aluminium...and ce ment is one of the sectors we will focus on."
The country needs investments of $500 billion in infrastructure in the five years to 2012. Poor infrastructure is estimated to knock two percentage points off the country's growth, currently running around 7 per cent. Tay does not expect recent policy tightening moves in India and China to take the gloss off stock markets in these countries though China's recent attempts to curb over-exuberant bank lending sparked selling in emerging and global equities.
Both countries have hiked reserve requirements for banks and India is expected to raise interest rates very soon.
"The key thing is for corporate earnings to keep pace with stock market performance," Tay said.

My Comments:
That is the fantestic news of the day.....

Updates:
$500 bn investment in 5 yrs? $500 bn = 22,50,000 cr rupees...and that surpass all estimates of any type of investments.....What can be the impact of this can anyone imagine?Money has to flow in India, there is no other distination.There can be no other.Yesterdays rally proves that.
USA Prez speaking on India is no flash in a pan....or he is just not talking nonsense.Obama has got all information about what India is doing and how she will expand......He is merely not mentioning India just for the sake of doing it...he is serious....