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India provides great avenues for investment, according to the panel of speakers at the Australia India Business Council’s recently held seminar on ‘Investing in India’s Growth’.
President of AIBC (Victoria) Stephen Manallack moderated the discussion, as the audience heard insights from various experts on how India is a strong business growth engine and why it is a better investment choice ahead of China.
Deputy Chief Investment Officer (Equities) at ICICI Prudential, Mrinal Singh was a panelist at the seminar. Well known for his skilled portfolio management, he currently manages IPru Discovery, one of the most successful schemes in India.
Managing Director at India Avenue Investment Management (IAIM), Mugunthan Siva introduced his company’s investment strategy. IAIM is an Australian investment firm based in Sydney with affiliations in Mumbai. They provide investment solutions for investors seeking to access India’s capital markets.
According to the presentation at the seminar, India’s growth spurt dwarfs its peers and India’s economic growth rate, projected by various agencies and the Indian Finance Ministry for 2016-2017, ranges between 7.4 and 7.75 per cent.
The speakers attributed India’s strength to several factors including its young demographic base and diversity. Every month over 1 million Indians reach the age of 18 and 56 per cent of its population is below 30 years of age.
The burgeoning working age population and consumption boom gives India a competitive edge over countries that are ageing fast. These favorable dynamics, combined with better economic management under the Modi Government, are luring investors.
According to IAIM, the equity market is currently among the world’s best performers. Information supplied by IAIM also detailed how the Bombay Stock Exchange is the oldest in Asia with over 5,500 listed companies from diverse sectors. This offers Australian investors diversity they cannot find on the ASX – where financials account for 52 per cent of the stock market, while on the BSE financials are only 21 per cent.
According to Chapter Head of Banking & Finance at AIBC, Rakesh Raizada the event received positive feedback from a very receptive audience.
“All the parameters indicate that India is becoming a better choice for investment and business opportunities forging ahead of China,” he reiterated.
The seminar, held at Corrs Chambers in Collins Street, ended with networking drinks and canapés.