India’s mistake laden build-up to the 2010 Commonwealth Games may not seem like such a big deal.
It’s a tournament that only includes members of the British Commonwealth and it certainly isn’t as big an event as China’s Beijing Olympics were in 2008.
Nor is it as big as the events to be staged in other BRIC countries Russia (Winter Olympics 2014) and Brazil (2014 World Cup, 2016 Summer Olympics), or even the European Football Championship to be staged in the Ukraine and Poland in 2012.
But that’s just it, this is a small event, and something Delhi should be able to get right.
Clearly the country is not up to task in terms of building infrastructure. That has to be worrying for individuals investing in the country’s real estate sector.
Returns on those investments might be great right now, but if the Indian economy were to slow, as they continue to combat rapid inflation, those yields might decline and quality might become a bigger concern.
Investors may actually want to start going to building sites, rather than just flying over them in helicopters or reading proposals at home, to check on the quality.
Even more worrying is the impact a failed games will have on broader investment in the Indian economy. It isn’t likely to stop companies who see India as a key, untapped, emerging market.
But it may make investors wary of purchasing those Nifty 50 ETFs and speculating on the rise of the Sensex. That could hit your portfolio in the short term.
An event to watch, as it may impact confidence in this BRIC member.