Controversial Economist predicts that India could dethrone western wealth and power

Outspoken economist, Dr. Marc Faber, was at The Taj Mahal Palace Hotel on Saturday.

Dr. Faber, who's also the editor of The Gloom, Boom and Doom Report, was the keynote speaker at Equitymaster's 5th annual investor conference.

Equitymaster is a financial research publisher based in Nariman Point, Mumbai.

Over dozens of charts, Dr. Faber showed that while growth in the West is slowing, Asia is growing at a tremendous rate.

Dr. Faber is nicknamed "Dr. Doom" for his contrarian and bearish predictions. He warned clients to cash out before the Black Monday stock market crash in 1987, and helped clients profit handsomely as the Japanese stock bubble burst.

But he's been a longtime Asia bull, and wrote an Amazon bestselling book predicting the continent's rise, titled "Tomorrow's Gold: Asia's Age of Discovery."

Dr. Faber first came to India way back in 1973, but at the time it was difficult for a foreigner to invest in India. That's changed now and he's taking advantage.

During his presentation, Dr. Faber said the "end of Western economic and political hegemony" is coming, and Asia's rise to the top is virtually unstoppable.

"We live in a new world," Dr. Faber said.

But how should individuals invest in this new world?

Dr. Faber recommends Indian stocks, real estate, bonds and commodities (with an emphasis on precious metals). Over the long run, they should all do very well.

Specifically, Dr. Faber said he'd wait for the current correction in Indian stocks to take its course, before investing. He particularly likes financial service stocks.

Dr. Faber offered two caveats to his prediction.

First is India's growing and bureaucratic government. Dr. Faber said that "government is a cancer", the smaller it is the better. He does, however, think the RBI is doing a "wonderful job" as a steward for the Indian economy, which is rare among central banks.

Second, India's rise depends on peace and stability in the region. The USA, who won't cede dominance easily, could play the role of "troublemaker" in the east. The USA has tens of thousands of troops spread around Asia.

If both these threats can be avoided, "India has the healthiest demographics in the world", and the long-term future of the country is incredibly prosperous.