India now the straight-forward long term story, not China, but go both!

“India much more straight-forward long term story than China” – Christopher Wood, Equities Analyst, Jefferies

For business and investment, India is now a more straightforward, long-term option than China.

But it is really smart to think BOTH India and China, not one or the other.

The equity strategists are saying it. All the trade commentators are saying get your product or service into India – now.

One equity analyst, Christopher Wood, the global head of equity strategy at Jefferies, said in the latest edition of his immensely popular newsletter to investors called ‘GREED & fear’: “India remains a much more straightforward long-term story than China, which is why GREED & fear has 39 percent of the Asia ex-Japan long-only portfolio, long-term in its focus invested in India and “only” 25 percent in China.”

INTO INDIA points to the incredibly high number of young Indians coming through – called the demographic dividend” – as the big reason to be there.

Time to begin or upgrade with an Indian investment and market entry strategy?

Great appointment for new Chair of the Centre for Australia-India Relations

INTO INDIA was super pleased to see that Australia’s Minister for Foreign Affairs, Senator Penny Wong, has appointed Ms Swati Dave as the inaugural Chair of the Advisory Board to the Centre for Australia-India Relations (CAIR).

By all talks, the CAIR is going to be the new epicentre of Australia’s broad relationship with India.

It can take things to a new level. Much needed.

CAIR will open some time this year and will serve as a national platform to further strengthen our relationship with India.

Why is this such a strong appointment?

Ms Dave is currently Deputy Chair of the Asia Society Australia and as a member of the National Foundation for Australia-China Relations’ Advisory Board. She is also an Investment Committee member for QIC Global Infrastructure. Ms Dave has more than 30 years’ of experience in finance and banking across a range of sectors in both domestic and international markets.

She is the right person to guide the relationship to a higher level.

We need much more guidance on business relations, cross-cultural understanding and a broader cultural engagement with India. INTO INDIA has long called for more Australian investment in India -investment is a powerful basis for future trade.

CAIR will apparently work closely with the Australia India Council (AIC) and the Australia India Institute (AII).

Australia and India – stepping up with CAIR to a new, stronger relationship.

Australian Vintage Ltd needs to rethink India strategy – it is not “just like China”

Craig Garvin, CEO, Australian Vintage, is right to enter the India market but needs to find the right way

The company behind McGuigan, Tempus Two and Nepenethe wines has set its sights set on affluent Indian consumers – but it might need to take a second look.

Australian Vintage Limited chief executive Craig Garvin believes the world’s second-most populous country, is “just like China”.

Yes, he is right that there are a million millionaires in Delhi and Mumbai – but does that equate to your market? These are the established wealthy, mainly male, and many are set in their ways.

Is a better market for Australian wines the young emerging wealthy of the future?

India is not “like China” – the Chinese population is much older and India has the youngest population on earth. Millennials and Gen Z are said to amount to around 750 million of India’s population. Known in India as the “demographic dividend”, this young population is the key to market entry for products like wine.

Already we know that sales of red wine are up in major urban centres, driven by demand from young women, educated and in the ranks of professionals and executives.

What distinguishes India for “premium” consumer products is that the market is young, it is emerging, it is a generation that instead of being “born someone” want to “become someone” and females are leading much of the consumer preferences of this young group. That is, it is ripe for change.

There is probably no other market like it in the world.

Other than its four main wine brands McGuigan, Tempus Two, Nepenethe and Barossa Valley Wine Company, Australian Vintage Limited also produces ready-made cocktail mixes under its Mr Stubbs brand, a range of gins under its Tempus Two brand, and a juice concentrate called Austflavour.

Australian Vintage is a strong company with some fabulous brands which will be just right for India – so long as the thinking and strategy is right.

INTO INDIA wishes them every success.

2023 the year to engage with India as change speeds up in all sectors

Welcome to 2023 from INTO INDIA.

This has to be the year to engage more with India, be there more, make connections, launch products and services, expand into new areas and more.

Just one example stood out for me over the break – EV sales.

Electric Vehicle sales have become a symbol of how fast India is changing.

Delhi has recorded the nation’s largest electric vehicle (EV) sales in the country among all the states/Union Territories. A total of 7,046 EVs were registered in Delhi in December 2022, witnessing an annual growth of 86%.

Since the launch of the EV policy Delhi had recorded registration of a total of 93,329 electric vehicles out of which, two-wheelers contributed nearly 55% of the total EV sales in 2022. The December 2022 sales of EVs have resulted Delhi reaching one step closer to its mission of achieving two-thirds of its targets which can be attributed to the “i3” model of Incentivisation, Innovation and Inclusion.

The Transport Minister of India, Mr. Kailash Gahlot stated Delhi to be the country’s EV capital with 2,300+ charging stations and 200+ batteries swapping stations in operation across the city.

On August 7, 2020, EV policy was launched in Delhi by prioritising two-wheelers and three-wheelers segments, with an aim of rapid adoption of electric vehicles contributing to 25% of all new vehicle registrations by 2024.

A campaign launched by the Chief Minister of Delhi, Mr. Arvind Kejriwal, “Switch Delhi” focuses on spreading awareness about the benefits of such vehicles in making Delhi clean and pollution free. The government is spending more than US$ 183 million (Rs. 1,500 crores) on the electrification of 56 depots for housing more than 10,000 buses by 2025.

What a year! ECTA the radical change in relations between India and Australia

As this year comes to a close, INTO INDIA reflects on the game changer – the Economic Cooperation and Trade Agreement.

It surprised us all. Many did not expect it to be signed. Nobody expected it to be so vast in potential impact.

ECTA will save Australian exporters around $2 billion a year in tariffs, while consumers and business will save around $500 million in tariffs on imports of finished goods, and inputs to our manufacturing sector.

The tariff commitments provided by India in the agreement will open up access for Australia’s exporters of products including critical minerals, pharmaceuticals, cosmetics, lentils, seafood, sheepmeat, horticulture and wine.  

Australian service suppliers will benefit from full or partial access across more than 85 Indian services sectors and subsectors. Australian suppliers across 31 sectors and subsectors will be guaranteed the highest standard of treatment that India grants to any future free trade agreement partner. 

Australian services sectors to benefit include higher education and adult education, as well as business services such as tax, architecture and urban planning.

ECTA will support tourism and workforce needs in regional Australia by making 1000 Work and Holiday Program places available to young adventurous Indians. It maintains opportunities for Indian students graduating in Australia to undertake post-study work, with a bonus year of stay for high-performing STEM graduates.

Really looking forward to 2023!

Reade more here…

India’s YOUTH BOOM will reshape the world

These are the priorities of Indian Gen Z and Millennials.

Most of the world’s young people live in India.

And India next month becomes the most populous nation on earth, passing China.

India’s YOUTH BOOM looks like this:

440 million Millennials (born between 1981 and 1996)

375 million Gen Z (born between 1997 and 2012)

There are two things we need to know about these generations.

First, they are hard working and earning better than their elders. A high percentage of them have a second job.

Second, they are big spenders, so their capacity to shape and influence us all is enormous.

So, getting your product or service into India right now would make great business sense.

And countries, like Australia, are busy building closer political and strategic ties with India. Makes sense – it will be the economic (and therefore cultural etc) driver of the future.

Time for Australian business and education to find a way to increase trade with India

Dr Ashok Sharma has written about the increasingly close relations of India and Australia – for example, we are now the number 2 education market behind the USA and just ahead of the UK. Dr Sharma pointed to the Comprehensive Strategic Partnership and the New Education Policy which should “bring the current education partnership to the next level”.

But what about other areas of trade?

We know that the increasing activity in education has many spin offs – increased tourism, professional exchanges and more.

Education might be the “trade flagship” that drags other industries into the trade mix.

But we cannot be sure.

It is time for a new national conversation about Australia-India trade, with a close examination on what blockages might exist and what steps would increase two-way trade.

India’s External Affairs Minister Dr. S. Jaishankar (pictured with Acting Prime Minister Richard Marles) came to Australia in October for the annual Foreign Ministers’ Framework Dialogue – where these matters were discussed.

The two foreign ministers discussed “accelerating and deepening economic ties, including through our Economic Cooperation and Trade Agreement.”

Sounds good.

But what is next?

Can the Australian Trade Minister, the Hon Don Farrell, bring business and education at all levels together in a national dialogue?

Remember – India is not just the second most populous nation on earth, it is also the YOUNGEST – which makes it the global growth centre. We cannot afford to miss this opportunity.

We have to find a way.

Space, satellites and security – now India and Australia collaborating

AICC’s Mahadevan Shankar (right) with SatCom President Dr Subba Rao Pavaluri in presence of Minister The Hon Shri Rajeev Chandrasekhar

India is a major centre for all aspects of satellites – the rockets are flying, the satellites launching and this is becoming a big industry.

There’s some good news in this for Australia. The Australia India Chamber of Commerce has driven this good news.

Thanks to the efforts of AICC’s Mahadevan Shankar, Convenor, Defence and Security National Industry Group – we now have super good news out of India – an MOU has been signed yesterday between the AICC and the SatCom Industry Association, India.

The signing was in the presence of Hon Shri Rajeev Chandrasekhar, Union Minister of State for Entrepreneurship, Skill Development, Electronics & Information Technology. Pictured with the documents in front of the Minister are (left) the President of SatCom Industry Association Dr. Subba Rao Pavaluri and AICC’s Mahadevan Shankar, Convenor, Defence and Security National Industry Group.

This bilateral partnership will lead to growing collaborations – and opportunities for Australian companies to engage directly with this growth sector of India.

SatCom Industry Association represents satellite operators, satellite systems, launch vehicles, ground and terminal equipment manufacturers and suppliers, satellite-based IOT/M2M solution providers, space startups, innovation hubs, academic institutions, law firms and provides interface with Government, Regulators, Policymakers and domestic & international standards’ bodies.

It has been a dynamic year for the AICC.

Members of AICC have been contributing extensively in this area past year, which has significantly motivated the progress of this bilateral 🇦🇺🇮🇳 partnership towards growing collaborations into the future.

Mahadevan Shankar says: “Sky is the limit and truly the exponential growth in space sector globally, and in particular in India, has opened up significant opportunities for Australian companies to engage directly and share in the rapid growth!”

“Big opportunities for next generation leaders, innovators & entrepreneurs to enter civilian and military use satellites and participate in the booming digital economies of future!” he said.

https://www.linkedin.com/feed/update/urn:li:activity:6991554366621061120

DEAKIN UNIVERSITY HUBS – the new way in India

Deakin University set to lead in new education era for India – at JGU are Professor Iain Martin, VC, Deakin, and Ravneet Pahwa, VP and CEO South Asia

These “HUBS” are a great innovation by Deakin University – giving it a great advantage in the Indian era of the New Education Policy.

Deakin Vice-Chancellor Professor Iain Martin visiting New Delhi, India, announcing the launch of partner-institutions so that students can commence the first part of their studies in their home country.

“I am excited to be back in India and it couldn’t have been for a better occasion than the launch of the DEAKIN UNIVERSITY HUBS at OP Jindal Global University, Symbiosis International University and Chitkara University,” said Professor Martin.

Here is why this is a big idea!

Indian students can now commence the first part of their studies with a Deakin partner institution in India and then transfer to a Deakin campus in Australia for the second part of their educational journey.

But that’s just the early stage of the HUBS.

“These hubs will provide valuable opportunities for growth, student mobility and joint research. They will promote enhanced collaboration between Indian institutes and Deakin, leading to academic and research excellence that will be highly beneficial for both countries,” said Professor Martin.

It gets better!

Deakin has established similar hubs with corporates – Infosys, TCS and more.

Deakin was the first international university to establish its presence in India in 1994.

CONGRATULATIONS to Ravneet Pawha, Vice-President (Global Alliances) and CEO (South Asia) at Deakin and the whole Deakin team in India.

Deakin is a role model in how to do business in India:

  • Establish a presence for the long haul
  • Be visible in India
  • Develop relationships over time
  • As India further liberalises, build stronger engagement
  • Use Indians to head up your presence in India
  • Ensure your leadership (V-C) is a regular visitor to India

6 tips for doing business with India

You have to establish a presence to do well in India

Be There

Fly in Fly Out does not work long term in India – naturally, Indians like to see that you are serious and that means having a local presence. Does not have to be big, but it has to be local.

Be Indian

As soon as you can, find a local Indian leader or team that can do two things – work with you plus take you into the Indian market.

Blend with Indian culture

We all love our “corporate culture”, but you might need to bend a little, blend a little to produce something right for India.

“Indianise” your product or service

Innovate, repackage, find new markets for what you do, accept technical innovations from within India – “Indianise”.

Be a Presence

Participate in local chambers and industry groups – the collective is so much more important in India and you need to find a way to “be a presence”.

Get support in India

Australia has some of the best people ready to help you – State Government Business Offices, Austrade – start talking to them early and keep the links going. They can be your best resource.