Great next era for India-Australia, says Hall Chadwick

Peter Pryn is a regular visitor to India and assists market entry for both India and Australia

As we approach Indian Republic Day and Australia Day – both on 26 January – here is a great message from my good friend Peter Pryn, Director of Hall Chadwick. This firm has a long commitment to building India-Australia business relations.

Change brings opportunity

This year, we see there to be great opportunities for international enterprises entering the Australian market. While there are niggling concerns about the Omicron variant, the post-COVID landscape is certainly one of rapid technological change, a transformational shakeup of global trading norms has occurred and there is an increasing focus on sustainable business. There is no doubt the way Australian business manage supply chains and source skilled staff has changed over the last two years. We see our clients, irrespective of scale, continue to look at ways to minimize supply chain interruptions to achieve an acceptable level of profitability.

Looking ahead: India – Australia relations

The Australian economy is very strong and the trend of high levels of foreign investment is forecast to continue. Along with a further easing of border restrictions in 2022, we are likely see a more aggressive migration program to catch up on lost population growth. This could be announced in the Federal Budget in May. We hope to see an expansive trade partnership (CECA) between India and Australia come to fruition before year-end. In a joint statement from Ministers Mr. Piyush Goyal and Mr. Dan Tehan last December, officials have been directed to speed up the negotiations.

These are all signs of a great next era in India – Australia business relations. We encourage you to start a conversation with us about opportunities to collaborate on business initiatives in 2022. 

We wish you all the best for your Republic Day and the year ahead.

Peter Pryn

Director

+61 3 9820 6400
  ppryn@hallchadwickmelb.com.au

India’s NSE world’s largest derivatives exchange

The National Stock Exchange in India’s finance capital, Mumbai

According to the Futures Industry Association (FIA), the National Stock Exchange of India has surpassed the New York Stock Exchange as the world’s largest derivatives exchange for the third year in a row in terms of the number of contracts traded in 2021. In addition, according to the World Federation of Exchanges (WFE) figures for 2021, the exchange placed fourth in terms of cash equities trading.

In the year 2021, the total number of registered investors on the NSE surpassed the 50 million milestone, reaching 55 million. The daily average turnover of equity futures has surged by 4.2 times in the recent decade, from US$ 4.47 billion in 2011 to US$ 18.98 billion in 2021. The daily average turnover of the cash market increased by 6.2 times within the same period, from US$ 1.50 billion in 2011 to US$ 9.3 billion in 2021.

The daily average turnover in currency derivatives surged by 83% from US$ 1.91 billion in 2011 to US$ 3.49 billion in 2021.

According to the exchange, academic research has demonstrated that a well-functioning derivatives market can provide a number of advantages, including greater liquidity and improved price discovery for the underlying assets.

The NSE recently announced that derivatives on the Nifty Midcap Select index will be available beginning January 24, 2022. With broad participation from all classes of investors in the current equity market rise, the midcap segment has come into focus, resulting in greater liquidity in these companies.

5 essential tips for doing business with India in 2022

Generation change is seen in shopping malls across India

Growing at around 9 per cent this year, India is well on track to be number 3 or 4 economy in the world. It is also one of the youngest countries on earth – with around 50% of the population aged under 25. Demand outstrips supply – for everything.

Here are some tips that might help your experience, but keep in mind you will find many variations and contradictions of these points in the very diverse and exciting India market:

India is many countries in one

Differences are not just seen in the North, South, East and West, India is truly many countries in one and you need to be ready for cultural diversity. While Mumbai is the fast and flashy financial capital, it is also a tough place because everything is done on grand scale and at great speed. New Delhi is more formal, also more liveable, and is more than a political capital – it is a powerful business city. Chennai is one of my favourites, embracing that slower southern pace and the values that shine in southern businesses. Pune is sophisticated and a major player across many sectors. Bengaluru is technology but much more as well. Regions have varying strengths, so research is the key.

Market entry strategies should think longer term

India is looking for more than a quick sale – it looks to build relationships and create trust that can last a lifetime. India is what we call a “collective” culture – everything is done within the group and if you make it into the group, you will make it there. This means your first venture should probably not be to send the sales and business development team over there is search of deals. Rather, lead from the top to create relationships – deals will follow.

Find your local Indian team and culture

Companies that have tried to impose their Head office teams and cultures on India operations rarely succeed. A priority should be to identify Indians who can lead locally – with your support. Accepting that the corporate culture might not be an exact mirror of your HQ culture is also vital – with care and guidance over time, your Indian operations will reflect key elements of central culture but will bring added value too.

“Yes” can mean “maybe” or “no”

Indians are among the most courteous and generous hosts on the planet. On top of this, their culture demands that they never provide an outright rejection or “no” statement, even when this is clearly the only answer. The dumbest question for a business to ask in India is “can you help me with market entry for my products?” The answer will always be “yes” and you will sit idle for a long time back home until you realise this is not the right question. Within Indian culture built so solidly on relationship above all else, the word “no” is a real relationship breaker and is rarely or never used. “Yes” can in fact mean “maybe” or even “no” and you need to look for the signs. Like most of Asia, Indians are indirect communicators. If that is not complex enough, consider that India has 26 major languages.

Learn the art of flexibility and patience

Being patient and flexible is an asset, even if you come from a country that likes to be blunt, direct and structured. Most Indian communication is indirect, so it can take some time to work out what the real issues are. India is full of surprises and you cope best through being flexible. Dropping any “one rule for all” approach is a good start.

Indian consumers going online

More good news! Consider Bangladesh – which for many symbolises everything wrong with the world – take another look

Literacy in Bangladesh jumped from 35% to 74%

Bangladesh, home to 160 million people, for many people in the west is a symbol of everything wrong with the unequal world.

But take another look.

It celebrated a ‘development miracle’ in 2021, its 50th year of independence. In the last three decades, GDP per capita has increased seven fold, 24 million people have been lifted out of poverty, life expectancy has risen to 73 years, infant and maternal mortality rates have fallen by a factor of five, the literacy rate has increased from 35% to 74%, and more than 97% of the population now has access to electricity, up from 62% in 2014.

Worth going over that again – it is genuine good news.

Yes, it’s already time to revisit your “new year resolutions”!

We are now a few weeks into 2022 so this is a good time to revisit your “new year resolutions” and perhaps take a different view.

This is from a friend and colleague Debashish Chatterjee who is a Director of Indian Institute of Management in Kozhikode, India:

3 Unusual Insights for 2022

#1. We begin the year with resolutions. They are often a laundry list of personal desires. A desire is an energy formation. When your desires are woven around a web personal pleasures, the energy they receive comes from your ego. This energy is limited. When your desires are for the greater good, the whole universe supports your desires. Enhance the circumference of your desires, you are bound to succeed.

#2. You do not have a busy life. You only have a busy mind. The world out there is nothing but a projection of the mind. Slow down the mind. Your world will transform around you. You will begin to see things that you had overlooked earlier. You will fumble less and create more.

#3. That which has a beginning also has an end. This was Buddha’s insight into the impermanence of life. Begin with the end in mind. Ask where are my actions and thoughts eventually leading me?

From INTO INDIA and Debashish, have a great 2022!

Happy New Year and a tolerant, multicultural future

A significant majority of people in wealthy countries now believe that having people of different ethnic, religious, and racial backgrounds improves society.

In the US, Canada, UK, Australia, New Zealand and Taiwan, 8 out of 10 people believe greater diversity is a benefit, and even in relatively culturally homogenous countries like Japan and Greece, the share has increased by double digits in the last four years.

Source – Future Crunch

Will 2022 see continued “hard diplomacy” or can we embrace “smart” and “soft” diplomacy?

INTO INDIA wishes you all a peaceful, prosperous, safe and healthy new year for 2022. This is our last post for this year.

The question for next year is how will we all get on better than we did in 2021?

I hope we will see “smart diplomacy” dominate next year – this is the kind of diplomacy that works with cultural and cross border differences. It is not insulting and does not force the other country into an aggressive response. It takes into account major global shared challenges such as climate change, Industry 4 and the continuing pandemic.

It is “smart” to talk to other countries in a way which allows them to make their own positive contribution to the debate – does not corner them into hostility.

Australia has done some “smart” diplomacy things this year – such as using former Prime Minister Abbott as a special envoy, a move well received in Asia.

Hoping countries will all be a lot smarter in 2022.

It would make it a good year for all of us.

How the QUAD can help Australia in trade talks with India

At last night’s meeting in Melbourne of the Australian Institute of International Affairs, Trade Minister Dan Tehan MP made reference to how the QUAD could be useful for future trade agreements.

The QUAD includes Australia, India, Japan and the USA. It focuses on supply chains and “independent and free region” – that is, a buffer to China.

But it might be a big help on trade.

India wants to use the QUAD as it steps up global trade relations.

And Australia already has FTA deals with the other two QUAD parties – Japan and USA.

The Quad is a diplomatic network of four countries committed to supporting an open, inclusive and resilient region. It complements our other bilateral, regional and multilateral cooperation, including with ASEAN.

The Quad aims to respond to the defining challenges of our time, including COVID-19 vaccines, critical and emerging technology, cyber security, climate change, infrastructure, maritime security, countering disinformation, counter-terrorism, and humanitarian assistance and disaster relief.

Indian Finance Minister in Forbes “top 100 powerful women”

Ms. Nirmala Sitharaman, Union Finance Minister of India, features in the Forbes’ annual list of 100 most powerful women. The finance minister ranked 37 on the list and was featured for the third consecutive time. In 2020, Ms Sitharaman occupied the 41st spot and 34th spot in 2019.

Other Indians to feature in this list include Ms. Roshni Nadar Malhotra, CEO of HCL Corporation, Ms. Kiran Mazumdar Shaw, Biocon’s Executive Chairperson and Ms. Falguni Nayar, Nykaa Founder.

Forbes releases a list of the 100 most powerful women every year.

Featuring The top ten of ‘The World’s 100 Most Powerful Women’:

Mackenzie Scott, Philanthropist

Kamala Harris, US Vice-President

Christine Lagarde, European Central Bank President

Mary Barra, CEO of General Motors

Melinda French Gates, Philanthropist

Abigail Johnson, Fidelity Investments CEO

Ana Patricia Botí, Santander Executive Chairman

Ursula von der Leyen, President of European Commission

Tsai Ing-wen, Taiwan President

Julie Sweet, Accenture CEO

Melbourne now medical research and pharma capital of Australia

Moderna to use Melbourne manufacturing base

Melbourne will become the first place outside of Europe and the United States to manufacture mRNA vaccines following a deal between the Victorian and federal governments and biotech giant Moderna.

Health Minister Greg Hunt said the facility would be key to the country’s medical manufacturing future and help meet the country’s COVID-19 vaccine needs.

Minister for Medical Research Jaala Pulford told ABC’s RN Breakfast Victoria’s heavy investment into medical research and pharmaceutical manufacturing over the past two decades had ultimately favoured Melbourne over Sydney for the bid.

Victoria’s medical research sector supports about 30,000 jobs and contributes an estimated $21 billion to the state’s economy, according to government figures.

“Melbourne is home to around 60 per cent of medical research that occurs in Australia and around 90 per cent of pharmaceutical manufacturing,” she said.

The facility will produce 25 million doses a year from 2024 and have the capacity to scale production up to 100 million doses per year to tackle future pandemics.

It will also produce other treatments for cancer, rare diseases, cellular engineering, and protein-replacement therapy.

https://www.theage.com.au/national/victoria/victoria-unveils-moderna-vaccine-deal-as-state-records-1189-covid-cases-20211214-p59ha1.html