Investing – Into India

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.

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.

Delhi registers highest monthly electric vehicle sales in December across states

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…

Trade deal to kicks off Dec 29th saving Aussie exporters to India $2b a year in tariffs

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”.

Indian Foreign Minister’s Visit to Australia Strengthens Strategic Convergence, Trust, and Continuity in the Comprehensive Strategic Partnership

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.

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.

India and China – a simple comparison

The Indian economy is expected to grow by 7.3% in the current fiscal year, which ends in March.

China is expected to grow by 2%.

Population of China is 1.4 billion (approx), ageing and declining.

Population of India is 1.4 billion (approx), young and growing.

Indian economy is driven by supplying local demand as the youthful population and middle class growth increase demand.

Chinese economic growth has largely been driven by making and exporting.

India as a domestic demand-driven economy – is less sensitive to global downturns.

China is an export driven economy – highly sensitive to global downturns.

And we have not even got onto world’s largest democracy, innovative driven, attracting and welcoming western investment and more…

Compare the two – what do you think?

Read the best short summary of why India is the bright spot economically

This is one of the best summaries of why India should be on your business and trade radar.

My good friend Hareesh Tibrewala provides the great summary – he is the Author of ‘If I Had To Do It Again’, a Social Media Strategist and Internet Entrepreneur – currently Joint CEO of Mirum India.

“Right now the Indian economy seems like the brightest spot among all large economies.

“One one hand, the whole of Europe is suffering the brunt of the Ukraine war. And irrespective of sanctions against Russia, and who is winning or losing the war, the brunt is actually being faced by Europe in form of inflation and energy issues.

“On the other hand, the US seems to be struggling to come out of Covid. There are just no people anywhere to fill in the job vacancies. Every shop or outlet has “Hiring” signs in their window. And salary levels, even for minimum wage kind of jobs seems to have increased dramatically.

“And finally China, who was powering the world economy for the past few decades seems to be floundering thanks to zero-covid policy and an unprecendented drought.

“Overall the APAC region, and specifically India, seem to be comparatively doing much better and seem stable.”

Thanks Hareesh – well said!

How fast is India changing? It is about to become the largest producer of steel on the planet

INTO INDIA has written about the extraordinary transformation that is happening in the “New India” – airports, roads, ports, urban renewal, smart cities, shopping malls, digitisation and online shopping.

But is is truly stunning to hear that India is right on the verge of being the biggest steel producer in the world.

On August 23, Minister of Civil Aviation and Steel, Mr. Jyotiraditya Scindia, stated that India would soon become the world’s top steel producer. The Minister was addressing an NMDC and FICCI-organized conference on the Indian minerals and metals business. After China, India is the second-largest producer of crude steel worldwide.

He believed that India had switched from being a net steel importer to an exporter of steel. According to him, India now consumes 78 kg of steel per person, up from 57.8 kg in 2013–14. By 2030, the government wants to produce 300 million tonnes (MT) of steel, according to Mr. Scindia.

https://www.ndtv.com/business/india-to-become-worlds-number-one-producer-of-steel-union-minister-jyotiraditya-m-scindia-3278800