Teresa Barger Makes Case for India Investment #SALT2017

May 17 2017 | 3:47pm ET

Teresa Barger, CEO of Cartica Management, argued the case for investment in India at the 2017 SALT Conference. In a panel Wednesday, Berger argued that two major trends will drive opportunities in the emerging economy in the years ahead.

Her comments came during a panel discussion with George Hornig of Transatlantic Financial Holdings, Dr. Zhao Haiying of China Investment Corporation (CIC), and Morris Mark of Mark Asset Management.

First, Barger argued that the formalization of the Indian economy will help organized companies that play by the rules emerge. Traditionally, retail, distribution, manufacturing and other lines of business have been disorganized for decades. Many companies fail to play by the rules on taxes and have cut corners. However, with traceable payments and new tax rules in place many of the companies that have operated in the shadows will have to change their tune. Barger predicts that many of the companies who cheat will not survive. As a result, more established players will experience a strong opportunity to gain market share as rivals fall off.

Second, Barger cites the financialization of the Indian economy as a reason for optimism. Roughly 98% of the cash that had been hidden under the mattress has found its way into banks, Barger said. More important, Millennials – who represent 30% of the population – control roughly 70% of household income.

On Apr. 27, Barger told ETnow that her company was overweight on Indian companies.

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