Why Australia Should Invest In India

In the fag end of 2021, what are the factors which lead to this pertinent question and makes it very obvious for Australian investment in India – we try to decipher it from several aspects through a detailed discussion.

It’s Incredible!

India is a country which upholds unity in diversity. It comprises people belonging to a wide variety of creeds and culture. It’s been a melting pot since ages as it finds echoes in the famous poem Bharat Tirtha by Tagore. From the mighty Huns to the great Mughals and the fierce Pathans – all have amalgamated into the soul of this beautiful nation.

It’s said that, in India within a few kilometres one would experience a change in food habits, in another few kilometres would see a change in language and if they go even further then they would witness a change in culture evident in the dress code at first sight.

In a nutshell, this incredible nature of India offers a unique range of consumers which is quite lucrative for any potential investor. Nevertheless, it’s a rarity and magnifies the chances of attracting a customer by manifolds.

The Number Game

Numbers don’t lie. Women lie, men lie, but numbers don’t lie.  – Max Holloway

  • India contributes to 17.7% of the total world population which is 1,397,237,950 as of today, based on Worldometer elaboration of the latest United Nations data.
  • The median age in India is 28.4 years (source: worldometers.info), so half of its entire population is aged lower than 28.4 years. That’s close to a whopping 700 million!
  • The Worldometer data can further confirm that 35% of India’s population consists of urban people.

If we have a close look at these numbers then it would reflect that India is a huge and attractive market for foreign investors. Even after the economic shock resulting from the COVID-19 pandemic, India’s national GDP is expected to continue on a rise till 2025, as evident in the following  figure, the growth rate predicted to be higher than both the world and Asia-Pacific in particular.

The very fact that it’s the second highest populated country in the world is enough to grab the eyeballs of anyone willing to make new investments. It creates room to target a galaxy of prospective clients. As mentioned before, not only this population boasts of nearly 700 million people who are less than approximately 28 years old, this growing pool of potential buyers is further boosted by the lump amount of disposable income a lion’s share of Indian households possess, as exhibited in the following summary. The urban people in India, summing up to 35% of its population, equipped with this constant flow of cash, strengthen the ground for real business further.

Thus, India becomes a happy hunting ground for overseas players in the business when one takes the numbers’ game into account.

 The Kangaroo’s Paradise

Australian brands have a long and cherished history of making it big on Indian soil.

You will often find the sound of a KOOKABURRA bat knocking a KOOKABURRA ball while going across a cricketing field in this part of the world. The company has a strong presence in the cricket frenzy nation’s market in the form of Kookaburra Sport India Private Limited whose authorized capital stands at more than ₹30 million. Companies like ANZ Operations and TechnologyFCM Travel Solutions India Pvt LtdAustral 3D Global Pty LtdLinfox Logistics India Pvt LtdWestpac Banking Corporation – are key players in the Indian business scene and have grown in leaps and bounds over the years.

If we look at the recent developments then it would be even more prominent how the Indians have wholeheartedly embraced Australian brands and continue to do so with more eagerness.

  • In June, 2019, Australia’s largest fashion retailer, Cotton On arrived in the Indian market by partnering with online shopping platform, Myntra.
  • Major Australian women’s fashion apparel and accessories brand, Forever New has now close to 40 exclusive outlets in India.
  • In the last few years, Australian beauty brands like Sukin have experienced a sharp rise in the Indian market and are on huge demand.
  • In order to cater to the fast growing popularity of Australian brands, Amazon

India came up with an exclusive ‘Australia Store’ last year, which marked the arrival of famous personal care brand Swisse in India.

According to the latest data provided by the Australian Trade and Investment Commission, total exports to India make it to a whopping A$18.65 billion. That itself speaks volumes about the success story of Australian brands in India.

To The Top

Much like the protagonist in Satyajit Ray’s world famous film, Nayak(The Hero), the Indian economy desperately aspires to go to the top. India is deemed to be the fastest growing economy in the world and is believed to be among the top three economic powers within a decade. That’s certainly a reason enough to bank upon the Indian economy and invest in the Indian market.

Land Of Dreams

“I have a dream!” – Martin Luther King Jr

The number of start-ups in India has skyrocketed over the last few years. There have been numerous fairytale runs – from Flipkart to OYO. Interestingly, many Indian successful start-ups like Paytm have foreign companies (a large number of them being Chinese) as their major stakeholders.

At present, there are plenty of innovative start-ups in the country who are frantically searching for angel investors. A wise move to fuel these dreams will pay dividends in the near future for sure.

COVID Positive

The pandemic has certainly struck us hard but it has also turned out to be a blessing in disguise for some players in the financial sector.

In India, online shopping has risen exponentially after the spread of COVID, which is a major boost for new players in the virtual marketing field planning to invest in India.

OTT platforms have seen subscriptions rising almost at the speed of light so far as the Indian market is concerned. Indian viewers continue to remain glued to the new horizon of audio-visual contents. There’s certainly ample scope to make it big for foreign investors.

Only yesterday, Australia’s leading natural health brand, Blackmores announced its launch in the Indian market eyeing on the rising importance of natural health among Indians in the post-covid scenario.

Atithi Devo Bhava

This Sanskrit saying loosely translates into – ‘Guest Is God’. India has been always celebrated for its inclusive nature and the government policies in the recent past has given a powerful message that foreign investors are most welcome.

The other day it was announced by the respective trade ministers of Australia and India that the two countries will strike an interim deal on a Comprehensive Economic Cooperation Agreement (CECA) which notably includes e-commerce, by the end of this year. This move has the potential to bolster the bilateral trade relations to a great extent and will surely widen the possibilities of Australian investment in India.

Empty Space

“The ladder of success is best climbed by stepping on the rungs of opportunity.” – Ayn Rand

With the bilateral relationship between India and China hitting an all time low in recent times, Chinese companies who possess a considerable share in the Indian market, are now finding it hard to play their natural game. There have been bans on various Chinese apps lately by the Indian government, which have had considerable effects on Indian traffic to these products, as is evident from the following graph. This has certainly added to the woes of numerous Chinese investors.

This opens up an array of opportunities for non-Chinese – and in particular – Australian players to capitalise on.

Beyond Business

Managing to capture more space in the Indian market will ensure Australia’s political prowess gains a massive boost. Taking the current nature of the geopolitics of the Asia-Pacific region into consideration, it becomes the need of the hour for Australia to prioritise on this. It might turn out to be a masterstroke to improve strategically and will eventually facilitate the process of becoming a superpower in a great deal.

To Be Or Not To Be

“I will make him an offer he can’t refuse.” – Vito Corleone (Mario Puzo, The Godfather)

If we deeply introspect the above mentioned factors then the perception becomes crystal clear that it’s high time Australia should make further serious investments in India.

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