Why India? – Into India

Why India is such a rare and attractive investment market

There is something about investing in India that most investors are not aware of. INTO INDIA is pleased to bring this important statistic to you.

India is a rare market that has delivered double digit annualised returns in USD terms consistently over a 5, 10, 15 and 20 year time frame. Even the US has not done that, falling just short over the 20 year time horizon.

Why is this happening?

This startling fact was drawn to the attention of INTO INDIA by Anish Mathew, Chief Executive Officer & Chief Investment Officer, Sundaram Asset Management Singapore Pte Ltd.

Anish explains – “There are a couple of key reasons for this in my view. India is a capital scarce country and hence cost of capital has always been high in India.

“This has resulted in corporates being generally disciplined about their capital allocation decisions which in turn has benefited their shareholders over the longer term.

“Secondly, the correlation between economic growth and corporate profits is the highest amongst its EM peers. Studies have shown that over a 20 year period, it is around 0.62.

“As the Indian economy has grown at an average of 6% since 1980, corporate profits have benefited, thereby underpinning the performance of the Indian market over the long term,” he said.

For those who love the stats:

The MSCI INDIA Net Total Return USD Index:

5 years – 11.92%

10 years – 10.06%

15 years – 10.42%

20 years – 11.04%

Makes INTO INDIA wonder – are we missing the India investment opportunity?

Australian banker says “this is India’s century”

This is the best, strongest vote of confidence in India from one of Australia’s leading corporations.

Mark Whelan, Group Executive at ANZ: “The time is very much appropriate to grow here. If you look at the basics of the Indian economy and where its place is in the world, this is India’s century”.

Rufus Pinto, Country Head, India, Australia and New Zealand Banking Group, outlined the rapid recent growth of ANZ in India: “ANZ India started our Institutional Banking operations in 2011. 13 years of existence across three branches today with over 80 bankers supporting the top Financial Institutions; Local Large Corporates and MNC’s working together with our home markets of Australia and New Zealand, and ~30 markets in our global network providing our clients a seamless agile offering.

“ANZ in India today house almost 20% of our global workforce, with our Global Capability Centre in Bengaluru,” he said.

This is change on a grand scale for a leading Aussie company.

Yes, this is India’s century.

Time to get on board?

Australia’s sister-city relationships with India and the diaspora here – asleep but huge potential

The growing Indian diaspora in Australia could add real energy to our relations with India – and the sister-city program could be an ideal vehicle.

My desk research suggests that only Brisbane and Ipswich have formal sister-city relations, both with Hyderabad. I also believe Perth has begun searching for an Indian sister-city.

This is pathetically small when compared to our large numbers with Japan, USA, Canada and China. It is time to catch up with India.

Global sister-city relationships, also known as city twinning, started after World War 2 with the ideal of fostering international cooperation, cultural exchange, economic development and disaster preparedness.

Worldwide sister-city relationships right now have almost stalled, yet offer immense potential.

There is a growing need for comprehensive research to assess the effectiveness of existing collaborations, identify challenges, and formulate evidence-based policies that can enhance the outcomes of these bonds.

We should reinvent sister-city relations with India and focus on helping with challenges such as climate change and pandemics, along with development and economic links. The Indian diaspora in Australia is well placed to lead this.

Modern technology makes sister-cities highly attractive via the improved and cheap communication channels. Knowledge exchange is now easier than ever. Economic collaboration and trade between twin cities can go through the roof if the local diaspora is heavily involved.

People to people connection is the sleeping giant of Australia-India relations and it can wake up and energise via the Australian Indian diaspora.

How can we apply digital platforms, data analytics and smart city technologies to create highly effective sister cities with India? We need answers in order for sister cities to be a wise investment of time and money.

Successful sister-city relationships must be characterised by a commitment to mutual understanding, effective communication, and a focus on shared goals.

Anusha Kesarkar Gavankar, a Senior Fellow at the Observer Research Foundation, recently wrote: “Policymakers could focus on enhancing communication channels between sister cities by utilising modern technology, establishing regular forums, and promoting language exchange programmes. Developing dedicated online platforms and mobile applications can facilitate real-time communication, allowing cities to share experiences, best practices, and innovative solutions to shared challenges.

“Furthermore, establishing annual forums or conferences where representatives from sister cities can meet and discuss collaborative opportunities can strengthen ties and foster a sense of community.”

In addition to the economic potential, I would love to see sister-city scholarships for Indian students to study in Australia, as well as cultural events that showcase the rich diversity and indigenous knowledge of each city can strengthen the bond between communities.

Many of our universities now have formal links and presence in Indian cities, so it would make sense for sister city deals to focus on this groundwork.

I would also like our sister city deals with India to include “great challenges” so the two come together for problem solving and common goals. This adds real energy to the relationship.

The Indian diaspora in Australia can provide the real energy to make this work. We already know External Affairs Minister Dr S Jaishankar is a big fan.

Read more from Observer Research Foundation here:

https://www.orfonline.org/expert-speak/the-twin-connection-revitalising-sister-city-relationships

Jasmine Batra and AICC outlining a thoughtful way to enter the India market

Two organisations that advocate a “more thoughtful” way to enter the Indian market came together last week in a wonderful seminar providing some super advice.

First was the Australia India Chamber of Commerce (AICC) which hosted the event and their Chair, Chris Mooney, put the case for the chamber’s National Industry Groups doing well researched and sequenced steps to engage with India. Each group does research for a white paper, builds a community and knowledge group around it and leads to well prepared India missions.

Second was the keynote speaker, Jasmine Batra from Arrow Digital, who have a program called “The Big Leap” taking clients through a 12 month program of understanding and entering India. INTO INDIA has long advocated that slower market entry produces superior long term results – a strong alternative to the traditional Aussie hasty transactional approach. We love “The Big Leap” concept.

There are three major factors that make India today a very special market – first, the young population with an average age of 28; second, the rise of the tier 2 and 3 cities, including their specialisation, three, India’s global leadership in rolling out digital infrastructure that is transforming business and society.

Jasmine talked about importance of Food, Festivals and Family when thinking about India. “Family” includes what she called “the crazy rich” such as Tata, Ambani and many more. But it also goes right down to small community business families. Your journey will interact at all levels at some time.

Reducing risk is vital. There are three steps you can take. First, understand the cultural context. Second, do market research and find local partners. Third, network community and do due diligence.

In conclusion Jasmine Batra said you should get over there, get around and get partners. By research and regular visits, your more thoughtful engagement with India will produce results.

La Trobe University very kindly provided the venue.

CONTACT AICC

About Us

Contact Jasmine Batra

https://arrowdigital.com.au/about-us

9 Rules for Thriving in India

Rules compiled from my personal experience – and with some reference to “Rules for Living” by the School of Life…

1. ACCEPTING IMPERFECTION

You will never be happy in India if you seek perfection. Hang on…maybe seeking perfection anywhere is a flawed idea. Is it possible we humans are inherently flawed and broken? Is perfection beyond us? Even the west with its “belief” in science has not stamped out stupidity and pain. Life will always include suffering – this is a big Indian idea. Accepting this makes everything so much better.

2. VULNERABILITY & COMPASSION MAKE LIFE SHINE

This follows from “Accepting Imperfection”. We are all in the same boat, and recognising that we all share weaknesses, fears and mistakes can make us feel generous towards others who are also imperfect – and feel compassion for ourselves. I learnt in India that sharing your vulnerability, talking about it to people you have just met, can lead to amazing connections.

3. ALWAYS BE KIND

To be kind to others is a choice. Being kind is a form of respect in action. In India many people accept that what happen to us is mostly out of our control, so stop struggling and find a way to live. It also acknowledges that terrible things can happen anywhere, anytime to anyone – so we can be scared or even resentful, or we can just be kind instead. It feels good.

4. HAVE A GOOD LAUGH

I seem to smile and laugh more when in India. There is a kind of blanket acceptance that life is weird, and humans are pretty funny, so have a good laugh. Accepting all of this with good grace goes a long way to easing our frustrations at our own stupidity. Back home we often see acceptance as just doing nothing – but in India acceptance becomes the first step to boldly trying your best, knowing that any outcomes will not be perfect. Why would you expect a planet of 7.8 billion people just as foolish as you to run smoothly, why expect it to be better, why look for “it SHOULD be better”? Just have a chuckle.

5. WE ARE GOOD ENOUGH – AND NOT

I dropped my obsession with “perfection” on my first arrival in India. Sure, the luggage system looked a bit messy, but they never seemed to lose my luggage. I found that the alternative to perfection is not failure, This small thing (luggage) can lead to a greater idea – rough and flawed as we all are, we can make our peace with the idea that we are, each of us, ‘good enough’. We in the west are way too quick to call out “failure”, especially in ourselves. But being ordinary or not measuring up to someone’s standards is not failure – it is just how things are.

6. FINDING WHY ROMANTICISM IS A WASTE OF SPACE

I have learnt a lot from young Indians here in Melbourne and in India. In India there is much to learn about the gradual growth of friendship into love, as a more stable approach than “falling head over heels in love”. But even that is not perfect. I learn that love grows out of friendship, and that compatibility grows out of love – while in the west we see it as a prerequisite for love. But I also learned that having said all of this, no one is ever wholly ‘right’ nor wholly wrong. We are just learners, or as Gandhi said, seekers.

7. ACCEPTANCE IS BETTER THAN CONSTANT STRUGGLE

When the great Indian philosopher Krishnamurti was on his death bed, he was asked how he maintained such a composted and happy mind. His reply was a teaching for me. He said: “I don’t mind what happens”. It made me realise that almost all of the time, with whatever is happening, my mind made up stories or created ideas – most of which were not helpful because they led to struggle or resistance to what was happening. Things might be bad, but we can still be cheerful. Don’t mind what happens.

8. CLEARLY SEE WHAT IS HAPPENING

Despite our seeming importance, we are not at the centre of the universe – probably not at the centre of anything. Seeing ourselves at the centre means we do not really see as it is, we see as we are. Back to the baggage at the first airport I visited in India – I did not see what was happening, I saw it as I was – impatient, not trusting, agitated and emotional. Putting myself at the centre, when I meet people, I meet them where I am at. With wisdom from India (“I am not the centre”) – I can meet people where they are at. It is a clearer vision.

9, YOU WILL FORGET ALL THIS

I can forget anything – and probably you can too. Our minds might be amazing but they also just – forget stuff. So, any big ideas need to be revisited, again and again, almost so they become a habit. Even if only one of these ideas works for you, go over it and keep it for your next visit to India.

What’s in a name? Is it “India” or “Bharat”?

What’s in a name? India or Bharat?

Many commentators believe Indian PM Modi will bring on a change of India’s name to Bharat. INTO INDIA thinks this most unlikely.

Modi will win either way, vote or no.

PM Modi will, in a very Indian way, continue to use the two names side by side.

You see, things do not have to be resolved in India – and both sides can have their day. Ambiguity and paradox are part of Indian culture.

“Bharat” is the Hindu name for the country, so PM Modi appeals to Hindus every time he uses it – such as on menus and nameplates at the recent G20 meeting he hosted in New Delhi last September.

Many attendees thought this a signal that a name change was on the cards for India. Wrong. Just by using both, he continues to create distance between the nation and its colonial past.

Bharat is already a name recognised in India’s constitution.

With India voting in a general election in March and April, we will no doubt see more banners displaying Bharat.

PM Modi knows that getting a name change done is a tough call, requiring a constitutional amendment with a two-thirds majority in both houses of parliament.

So, when it comes to a name, two is better than one. India and Bharat.

Australia risking major reputational damage over education visas mess

Something weird is happening in denying visas for education study in Australia.

Students from India, Pakistan and Nepal are most impacted by the visa denials.

“The unequivocal message this sends… is both unfair and unbecoming”

The Independent Tertiary Education Council Australia (ITECA) is a membership-based peak body bringing together independent providers in the higher education, vocational education and training sectors. It has made some comments which are sensible and powerful.

“This situation not only undermines the aspirations of Indian nationals with the genuine intention to pursue educational opportunities in Australia, but also casts a shadow over the nation’s reputation as a welcoming and inclusive study destination,” ITECA chief executive, Troy R Williams, said.

“The unequivocal message this sends — that Indian students are somehow less desirable or unwelcome in the eyes of the Australian government — is both unfair and unbecoming of Australia’s long-standing values of diversity and inclusivity.”

ITECA – which has previously voiced concern about the migration strategy – also said that the government’s actions “seem to be at odds with broader governmental efforts to strengthen economic and security relationships with India”.

Can renewable energy vastly improve incomes and jobs for Australia’s First Nations people?

It seems the two might be about to come together.

Australia’s plentiful solar and wind resources and proximity to Asia means it can become a renewable energy superpower. As the renewable energy rollout continues, Aboriginal and Torres Strait Islander people could benefit.

Renewables projects can provide income and jobs to Aboriginal landowners. Access to clean energy can also help First Nations people protect their culture and heritage, and remain on Country.

It seems Canada and the United States are already on this path.

The Australian government is developing a First Nations Clean Energy Strategy and has sought comment on a consultation paper. Submissions have closed, but If, like me, you feel strongly about the issue, have your say to Government and to MP’s.

This could be a gamechanger for Australia.

As an “energy superpower”, selling power to India and Asian neighbours, we make a difference for them, gain new export markets and create a big shift in how Australia is perceived in the region.

By speaking up, you can help our government do what is so obviously the right thing.

Two of the best quotes you will ever read about India

INTO INDIA is always finding new ways to promote India and build understanding of how to connect with this great country.

But, it has all been said before – and better than I could ever say it.

Two very famous westerners made powerful and personal statements about India, and I learnt from them both.

The great twentieth century western scientist, Albert Einstein, had this to say about India: “We owe a lot to Indians, who taught us how to count, without which no worthwhile scientific discovery could have been made.”

And the American great, Mark Twain, who gave the world so much in terms of easy-to-understand wisdom, said: “India is the cradle of the human race, the birthplace of human speech, the mother of history, grandmother of legend, and great grandmother of tradition. Our most valuable and most instructive materials in the history of man are treasured up in India only.”

What do you think?

The bridge that is transforming Mumbai

The last time I went from south Mumbai to have dinner with friends in Navi Mumbai, the trip took three and a half hours – making us 90 minutes later than the expected two hour trip.

Today you can do this trip in 20 minutes.

Prime Minister Narendra Modi inaugurated the Mumbai Trans Harbour Link (MTHL), the country’s longest sea bridge, on Friday. The sea bridge connects South Mumbai to Navi Mumbai and will reduce the current two-hour journey to just around 15-20 minutes.

While inaugurating the bridge, PM Modi (who loves to paint the big picture) said, “This is proof of our resolve that for India’s development, we can take on even the ocean and break the waves.”

The 21.8-kilometre-long bridge will enhance connectivity to both Mumbai International Airport and Navi Mumbai International Airport, reducing travel time from Mumbai to Pune, Goa, and South India. Additionally, it will improve connectivity between Mumbai Port and Jawaharlal Nehru Port.

Things are changing fast in India – perhaps this is your year to find out what this might mean for you?