Three Reasons to Invest in India Right Now

Three Reasons to Invest in India Right Now

The world’s largest democracy is showing no signs of slowing down.

Invest in indiaThe world’s largest democracy is growing by leaps and bounds compared to most developed countries, which hardly move the needle these days. India should continue outpacing the rest of the world for the foreseeable future thanks to ambitious government reforms aimed at stoking consumer demand, production and foreign investments. All the while, India stands to benefit from the so-called “demographic dividend.” It’s expected to be the world’s youngest country by 2020 with nearly two-thirds of its 1.3 billion people of working age and in their prime spending years.

In the long term, India’s market potential looks attractive for investors. While valuations are expensive right now, which might deter short-term investors and investors looking for lower cost assets, today’s expensive stocks may be irrelevant in the future because of India’s significant opportunity for growth.

World’s fastest growing country

India reigns supreme as the fastest-growing G20country with an economic growth of around 7.5 percent annually since 2014. Consulting group PwC forecasts real GDP growth of 7.3 percent this year, followed by 7 percent expansion in 2018 and an average of 6.5 percent annual growth between 2019 and 2023. By contrast, China’s growth is seen slowing to 6.5 percent this year and 6.1 percent in 2018. Growth estimates for the People’s Republic range from 5 percent to 7 percent for 2019 to 2023.

Ambitious government reforms

India’s government is on the brink of enacting the most epic post-independence tax reforms that will unify the entire country into a single market. The nationwide goods and services tax (GST) — an effort 10 years in the making — is set to go into effect July 1. It will potentially lower prices for consumers while reducing bureaucratic bottlenecks for businesses. It is music to the ears of most industries and will reportedly juice economic growth by one to two percentage points.

The GST aims to replace more than a dozen levies dividing the country and turn India into a one-nation, one-tax common market. It will support business growth as it simplifies India’s Byzantine tax system — a tangled mess of local, state and national laws. Manufacturing costs should come down as a result and in turn make Indian exports more competitive. Taxes on commodities are expected to fall, lowering prices on end products.

Large youthful population driving innovation, productivity and growth

Most developed countries face an aging population past their prime working and spending years. India is the polar opposite. India is set to become the world’s youngest country by 2020 with 64 percent of its population in the working age group; the average age will be 29. With 1 million people entering the labor force every month, India abounds with young human capital essential to driving innovation, productivity and consumer spending over the long term.

Demographic trends favor a growing labor force through 2040 given the young population and low labor participation rates for women. Furthermore, some 70 percent of India’s population still lives in rural areas. The potential increase in productivity that goes hand-in-hand with urbanization is enormous.

Apple has long outsourced tech support and software development to India. It will soon produce iPhones there as well. The world’s largest tech company is positioning itself to grow its thin slice of the country’s fast-growing smartphone market and ease the sting of China’s rising labor costs. Wistron, a contract manufacturer, is set to kick off iPhone SE production in April in the city of Bengaluru in Karnataka state.

India’s manufacturing output grew at the fastest rate in five months in March as new orders accelerated. The Nikkei Manufacturing Purchasing Managers’ Index climbed to 52.5 in March from 50.7 in February improving for a third month straight, according to IHS Markit. The new orders index climbed to a five-month high of 53.6 in March from 51.3 the previous month. Readings above 50 draw the line between growth and shrinkage.

First quarter global leader

First quarter 2017 marked dramatic turnaround for India’s stock market after in a dismal fourth quarter. India Region Funds tracked by Lipper Inc returned an eye-popping 20 percent in the first three months of the year as stocks scaled new all-time highs. India’s performance dwarfed World Equity Funds which gained 9 percent in first quarter.

Investors cheered the Bharatiya Janata Party’s (BJP) victory in critical state elections in mid-March. The win boosts the odds the BJP — to which Indian Prime Minister Narendra Modi belongs — will continue its reform agenda and attract foreign investors. Modi, secured in power until at least 2019, will likely double down on his plans to improve infrastructure.

India Funds also outpaced all other regions long term. Through March 30 of this year, they gained 26 percent, 15 percent and 10 percent over the past one, three and five years annualized. By contrast, World Equity Funds added 13 percent, 2 percent and 6 percent over the same periods. The India Fund (IFN) surged 20 percent in first quarter. It returned 40 percent in the trailing year, 24 percent annualized the past three years and 17 percent annualized over five years.

Foreign inflows into India’s equity market topped $6.6 billion in the first quarter of 2017, offsetting the sell-off in fourth quarter 2016, according to Jefferies. Foreign inflows into rupee-denominated government and corporate bonds rose by $5.5 billion — most of which came in March. Local sovereign bond yields are among the highest in Asia. India’s 10-year government notes yield nearly 7 percent — about 4 percent more than their U.S. counterparts. Against this backdrop, the rupee appreciated 4.7 percent against the U.S. dollar in the first quarter. It logged its best Q1 performance since 1975 and its largest quarterly gain since third quarter of 2012.

The outlook for India’s stock market remains positive on expectations of continued government-led economic reforms, lower interest rates and corporate earnings growth. Earnings growth is likely to improve over the next two or three years considering the low base, stable commodity prices and a resurgence of consumer demand. Indian households are increasingly saving money in stock-based investments like mutual funds owing to weak outlooks on hard assets like real estate and gold.

Source: http://www.wealthmanagement.com/equities/three-reasons-invest-india-right-now

NIBM 2017 – Press Release

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PRESS RELEASE

The Netherlands India Chambers of Commerce and Trade (NICCT) is hosting the 11th edition of the annual flagship event – the Netherlands India Business Meet (NIBM) with this year’s theme: Tomorrow’s Business – TODAY!

The NIBM is organized in cooperation with HCL Technologies and co-sponsored by ING and Municipality of The Hague.

A number of breakout sessions are set with remarkable speakers who are market leaders in business innovations. The breakout sessions are:

  • Fintech : The Future of Financial Services
  • Data is the new oil
  • Health Innovation  & India
  • Impact Economy & India

“The Hague is a city that ensures the quality of life by investing in welfare and health innovation. We continuously strengthen our business climate. I am amazed by the level of innovation in India and the ambition of the younger generation to get ahead in life. There are many growth opportunities within the Netherlands India business corridor especially because our cooperation is one of mutual respect and benefit.” The Hague Deputy Mayor Karsten Klein

The NIBM will take place on Wednesday 10th of May from 12:00 at the Grand Hotel Amrâth Kurhaus The Hague. Each year the NIBM draws over 200 SMEs and multinational companies looking to refresh insights, solutions and their network within the Netherlands India business corridor.

HCL Technologies, a leading global IT services provider, is a key partner for the event. HCL inaugurated its co-innovation delivery center in 2015 – named ‘cXstudio™’ in Hague focused on an agile, customer centric, future digital operating model. HCL’s key note session this year will be around ‘Innovation and Digital Transformation in the 21st Century Enterprise’.

“HCL is excited to co-host the 11th Netherlands India Business Meet in Hague,” said Rahul Singh, President and Global Head – Financial Services, HCL technologies. “Today’s enterprise challenge is about building an agile, lean, digital network that supports digital strategy for the organizations. Our focus is on an end–to–end Digital Transformation journey that leverages disruptive new technologies to provide a differentiated user experience for the FinTech ecosystem.”

About NICCT

The Netherlands India Chamber of Commerce and Trade (NICCT) is the leading bilateral Chamber of Commerce representing the Netherlands- India business community. Since 2001, the NICCT has been active in giving a voice to its members on critical issues that affect their business performance.

NICCT operates on the strong premise that the knowledge, competencies and experience that resides within the corporate sector in the Netherlands and in India, are mutually complementary in many ways and that there is a significant scope for expansion of trade and business relations between India and the Netherlands. Current members of NICCT are Dutch as well as Indian MNC’s and SMEs.

NIBM

In the last decade, the Netherlands India Business Meet has reached a total of 1.000 companies, hosted 3 trade delegations and 10 networking sessions, brought over 50 top CXO level speakers and organized over 17 focused industry sessions for attendees.

We are honored to have an internationally renowned keynote speaker, trend watcher and futurist – Richard van Hooijdonk at this year’s NIBM. He presents the weekly radio program ‘Mindshift’ on BNR news radio as well as working together with RTL television. Mr. Van Hooijdonk will give us an oversight of upcoming trends in various sectors and pinpoint where he sees the future of innovation.

Mr. Michel Rademaker will give us an insight on what to expect from the breakout session of “Data is the new oil”. Mr. Rademaker is the Deputy Director of The Hague Centre for Strategic Studies (HCSS) who will be addressing the topic of “Big Data: What does it mean for tomorrow’s business and Big Data and Security, Responsible by Design”.

For a full overview and more information of the program www.nibm.nl

For more information, please contact :
Danielle Brink (danielle@nicct.nl) or Ritika Mehra ritika@nicct.nl
Contact number: 088 – 99 09 100

NIBM Registration Open

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Registration is now open for the 11th edition of the Netherlands India Business Meet (NIBM) with this year’s theme: Tomorrow’s Business – TODAY! The NIBM is in cooperation with HCL and co-sponsored by ING and Municipality of the Hague.

The NIBM will take place on the 10th of May at the Grand Hotel Amrath Kurhaus from 12:00 – 19:30.

A number of breakout sessions are set with remarkable speakers who are market leaders in business innovations. The breakout sessions are:

  • FinTech
  • Data is the new oil
  • Health Innovation  & India
  • Impact Economy

We are honoured to have an internationally renowned keynote speaker, trend watcher and futurist – Mr. Richard van Hooijdonk at this year’s NIBM. He presents the weekly radio program ‘Mindshift’ on BNR news radio as well as working together with RTL television. Mr. van Hooijdonk will give us an oversight of upcoming trends in various sectors and pin point where he sees the future of innovation.

With his international research team, he investigates tech trends like robotics, drone technology, autonomous transport systems, Internet of Things, virtual reality, biotech, nanotech, neurotech, blockchain, 3D and 4D printing and of course augmented and virtual reality and their impact on various industries. Findings are published weekly in the form of compelling articles, e-books and white papers.

Registration is now open for NIBM: Tomorrow’s Business – TODAY!* Space is limited so don’t miss the opportunity to be a part of tomorrow’s business.

 

*Registration for this event is mandatory and is free for all NICCT members, guests of our sponsors and speakers. Non-NICCT members will be invoiced €50.- ex VAT for attendance of this event which is non-refundable.

PROGRAMME 2017

The program for the 10th of May has been (tentatively) set as follows:

12:00 – 12:45 Registration & Lunch
12:45 – 13:45 Welcome and opening of NIBM 2017 by:

13:45 – 14:30 Tomorrow’s Business – Today!:

14:30 – 15:00 Innovation and Digital Transformation in the 21st Century Enterprise:

15:00 – 15:15 Big Data: What does it mean for tomorrow’s business and Big Data and Security, Responsible by Design:

15:45 – 16:45 Break out sessions:

17:00 – 17:45 Panel discussion: Impact investing in India for social development:

17:45 – 18:15: Summary & Thank you

18:15 – 19:30: Netherlands India Business Café & Networking

Farewell Reception – Ambassador Mukul

The Ambassador of India to the Netherlands – Mr. J.S. Mukul, will be completing his tenure as Ambassador to the Netherlands at the end of April 2017.

The Netherlands India Chamber and Commerce is hosting a farewell reception for Ambassador J.S. Mukul and would like to invite all NICCT members to join us as we thank him for his commitment towards the Netherlands – India business relations and wish him the best for his future challenges.

Please RSVP before the 10th of April to danielle@nicct.nl.

N.B. This is a NICCT member only event and registration is free of cost and mandatory.

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Indian Colour Festival

As sponsor of Bridging the Gap Foundation’s event – the Indian Colour Festival (Holi), the NICCT is happy to invite NICCT members to the event on the 12th of March from 12:30 – 17:00 at location: Old School (Gaasterlandstraat 3-5, Amsterdam).

We have free tickets available to give to our members on a first come, first serve basis. Should you be interested in attending this event with your family or friends, please contact danielle@nicct.nl.

Please note that children under the age of 4 years are not permitted to attend this event.

There will be a number of food stalls on location, a DJ and a number of prizes! For more information, refer to the attachment or the Facebook page: www.facebook.com/btgfoundation .

NICCT Chairman on celebrating Women’s Day

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“The Business Fraternity is just beginning to acknowledge & understand women leadership and the role of women in business. I believe that we are just scratching the surface and the potential of encouraging women entrepreneurship in all forms is enormous. NICCT firmly believes & promotes in gender equality and ensuring empowerment of women in our society.
The NICCT support office is professionally run by an ‘all ladies’ team along with the Board having a great blend of both. This cultivates a natural process to involve a healthy mix of both genders in projects.” – Vipin Moharir (Chairman, NICCT) #womensday

Save the date: NETHERLANDS INDIA BUSINESS MEET 2017

The Netherlands India Chamber of Commerce and Trade (NICCT) is the leading bilateral Chamber of Commerce representing the Netherlands- India business community. Since 2001, the NICCT has been active in giving a voice to its members on critical issues that affect their business performance.

NICCT operates on the strong premise that the knowledge, competencies and experience that reside within the corporate sector in the Netherlands and in India are mutually complementary in many ways and that there is a significant scope for expansion of trade and business relations between India and the Netherlands.

The 11th edition of the Netherlands India Business Meet (NIBM) will take place on Wednesday 10th of May at the Grand Hotel Amrâth Kurhaus The Hague. Each year the NIBM draws over 200 SMEs and multinational Companies looking to refresh insights, solutions and their network within the Netherlands India business corridor.

In the last decade, the Netherlands India Business Meet has reached a total of 1.000 companies, hosted 3 trade delegations and 10 networking sessions, brought over 50 top CXO level speakers and organised over 17 focused industry sessions for attendees.

This year the NIBM sponsored and supported by the Municipality of The Hague as well as industry partners and patron members of the NICCT- HCL and ING.

More details regarding this year’s NIBM event will follow in the coming weeks. Please save the 10th of May 2017 in your calendars.

IBFA Post-Election Breakfast Briefing

International Business Foundation Amsterdam (IBFA) is inviting NICCT members for their exclusive event: IBFA Post-Election Breakfast Briefing, on Friday 24th of March at KPMG Headquarters in Amstelveen.

About:

The Dutch general election will take place on 15th of March 2017. The results of this election and the consequent coalition government which will be formed is very difficult to predict. However, it is certain that the profile of the new Dutch government is of critical importance to business operating in this country, both domestic and international. To assist you in understanding the political post-election process and the possible outcome, the IBFA is organizing a Post-Election Breakfast Briefing on Friday March 24. The speaker at the Briefing is Mr. Stan Kaatee, who was recently appointed Director of Economic Affairs for the City of Amsterdam. Mr. Kaatee was previously senior advisor to the Dutch Prime Minister, Mark Rutte. He was also intensively involved in the coalition negotiations in 2012 which resulted in the current Rutte II Cabinet.

Registration:

Please register by emailing- ritika@nicct.nl with the following details:

Name:

Company Name:

Business Title:

Email address:

Please note registration is mandatory and is only possible until Monday 20th March.

Summary: New Year’s Reception 2017

We would like to take the opportunity to thank the Municipality of The Hague and Baker & McKenzie for their support and sponsorship of the NICCT New Year’s Reception that took place on Friday, 27th January 2017 at the World Forum in Den Haag.

The New Year’s Reception was received well by all attendees, guests and speakers as Ambassador of India to the Netherlands – Mr. J.S. Mukul and the Ambassador of the Netherlands to India – Mr. A.H.M. Stoelinga touched upon the Netherlands – India relations and the recent developments and upcoming events. Deputy Mayor to Den Haag – Mr. Karsten Klein showcased the recent trade mission to Bangalore and the ongoing collaboration between The Hague and Karnataka. Executive Director of the Hague Security Delta – Mr. Richard Franken, explained the progresses and challenges in the coming years as well as the possibilities in creating more business with India. Tax advisor from co-sponsor Baker & McKenzie – Mr. Johan Visser, explained the impact of demonetization, GST, equalization levy and Brexit will have for economies in 2017.

The final presentation was a panel discussion on business and cultural difference experienced and perceived when working in the Netherlands and India. The discussion was moderated by Mrs. Namita Krul-Taneja, founder of NewYardsticks. We had the opportunity to engage with:

  • Sarbani Bhattacharya (Partner at KPMG)
  • Sudip Lahiri (Vice President at HCL Technologies)
  • Gaurav Gupta (Global HR Director at Vehicle Refinishes, Akzo Nobel)
  • Anshul Asawa (Vice President Marketing – Home care at Unilever)
  • Aditya Putta (Program Manager at World Start up factory)

The reception concluded with drinks and snacks giving over 100 attendees the opportunity to network with the dignitaries, speakers as well as the attendees. Additionally, we would like to congratulate the winners of the lucky draw who each won tickets to India sponsored by Jet Airways. This lucky draw was only applicable to NICCT members.

Pictures of the the New Year’s Reception are available to view on our Facebook page.

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