Last Updated : 19 July 2008 at 16:40 IST

Jim Rogers: Hot on China, cold on India

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By George Iype
SINGAPORE: Global market meltdown, recession and bankruptcy fears and dipping profits of companies are wrecking major economies in the world these days. But ace commodities investor Jim Rogers continues to be very be hot on China.

”China is a country I am very hot on. I believe that Chinese economy will overtake the US economy, and China has the best investment potential in the world today,” Rogers, author of such famous books like Hot Commodities and A Bull in China, told Commodity Online.

He said three billion people living in Asia, most of them in India and China, will account for a major portion of the total demand for commodities in the coming years.

”Asia is fuelled by massive investment and growth. And in Asia, China is the hottest destination. So I continue to look for investment opportunities in China,” Rogers, who along with billionaire investor George Soros founded the successful Quantum Fund.

In 1998, Rogers launched the Rogers International Commodity Index, a composite, US dollar-based, total return index, designed to meet the need for consistent investing in a broad based international vehicle. The Index represents the value of a basket of commodities consumed in the global economy, ranging from agricultural to energy to metal products.

Rogers may be hot on China; but when he talks about India, the legendary investor gets cold feet. “I am excited about India as a travel destination. For an investment proposition in India, I would think twice,” he said.

He says even though India like China has been growing phenomenally well, political and bureaucratic hurdles still exist in India. “Plus, the infrastructure in India continues to be bad compared to China. In China, truck drivers drive at the speed of 70 kilometers per hour. In China, they can drive only at a speed of 20 kilometers because the roads are so bad,” Rogers said.

Moreover, he said he is upset with India, because of the Indian government decision to ban futures trading in some commodities. “I am a commodity investment guy. So whenever I hear governments meddling with commodity investments and futures trading, I get upset,” Rogers added.