India - Enroute to becoming the new Global Leader
India is forging its way towards becoming one of the potential superpowers of the world. Let’s see how.
·?????Exports
Merchandise exports?from India hit a record high of $35.2 billion in July 2021 — the highest-ever monthly figure ever in the country’s history. It is an increase of 47.91 per cent over the $23.78 billion in July 2020 and an increase of over 34 per cent over the $26.23 billion in 2019. The maximum increase in exports by value were to the United States ($6.7 billion), the United Arab Emirates ($2.4 billion) and Belgium ($826 million).
As per IndiaToday, “India’s exports have been rising gradually for the past few months, signaling a sharp rise in demand for goods and services as global markets rebound. The country's exports are likely to rise further as global trade activity gains momentum.”
·?????Skilled Talent Pool
India’s emphasis on affordable and accessible education, especially at the college level can generate legions of extraordinary levels of talent.
Industries, where the talent surplus will be the most visible, include the financial services with a surplus of 1.1 million, technology, media, telecommunications (TMT) at 1.3 million, and manufacturing at 2.44 million of extra highly skilled manpower in 12 years.
One of the key areas where an opportunity exists for India as well as the global economy is technology, of which India has the largest talent pool. Technology is the key enabling factor for growth across sectors and India can very easily meet the global future demand for talent in this space. We have the potential to dethrone other economies as regional and global hubs of technology.
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·?????Younger population:
India has approximately 65% of its population below the age of 35. In the coming decades, while some of the powerful nations will witness a decrease in workforce numbers, India is expected to have an increase, thus, favoring the future prospects of Indian skilled human resources being the most sought-after.
·?????Grand consumer base:
As per IBEF, “Indian consumer durables market is broadly segregated into urban and rural markets and is attracting marketers from across the world. The sector comprises a huge middle class, a relatively large affluent class, and a small economically disadvantaged class. Global corporations view India as one of the key markets from where future growth is likely to emerge. The growth in India’s consumer market?would be primarily driven by a favorable population composition and increasing disposable income.”
For example, in the retail market arena, big players like Amazon and Big Basket are leveraging the spending potential of the rising disposable income group showcasing the kind of untapped potential for other game players in the near future.
·?????The startup revolution:
India is the fourth-largest unicorn base in the world with over 21 unicorns collectively valued at US$ 73.2 billion. A potential first in the Indian business scenario, especially the startup market is the acquisition of Thyrocare, a chain of diagnostic and preventive care laboratories by the Mumbai-based unicorn - PharmEasy, run by API Holdings. PharmEasy is now looking at potential strategies of dual listing or reverses listing options with Thyrocare. This acquisition has raised the valuation for PharmEasy to $4 billion. A startup acquiring a publicly listed company is definitely a huge milestone in Indian corporate history.
The start-up India mission?has given a boost to convert these patentable innovative ideas into start-ups levitating India into the country among those with the highest number of start-ups. Example: Zomato?, OYO, Paytm
·?????Mergers and acquisitions:
Let us look at a few mergers & acquisitions that happened in India in recent years that have established India’s foothold strongly on the global map. 10 examples.
The increased inflow of capital has triggered M&A activity as startups are looking at leadership positions. Startups are willing to take a higher risk through M&A for market leadership or acquiring skillsets. unicorns such as BigBasket, Unacademy, Ola Electric, Zomato, and Urban Company have all undertaken the M&A route.
But?the?blockbuster deal for the Indian startup ecosystem in 2020 was the acquisition of?WhiteHat Jr by BYJU’S?for $300 million.
Unwilling to leave all the acquisitions to startups, established corporates such as Reliance Industries and Marico also expanded their reach. Reliance acquired online pharmacy Netmeds while Marico took over men’s personal grooming startup Beardo.
Another prime example is Tata Digital’s smart move in recognizing the potential in egrocery and epharmacy by acquiring a whopping 64% stake in Supermarket Grocery Supplies that owns BigBasket and a major stake in the online pharmacy 1 mg.
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·?????Rising MSMEs [SV11]?
The Micro Small and Medium Enterprises (MSMEs) sector is a major contributor to the socio-economic development of the country. In India, the sector has gained significant importance due to its contribution to the Gross Domestic Product (GDP) of the country and its exports.?India has approximately 6.3 crore MSMEs. The Indian MSMEs sector contributes about 29% towards the GDP through its national and international trade. The Government of India has designed various policies for the growth of MSMEs in the country. The Government of India has envisioned to double the Indian economy to US$ 5 trillion in five years. In order to achieve this goal, career opportunities for the young population have been generated and MSMEs have the potential to serve as a key employment generator.
?[SV1]https://www.indiatoday.in/business/story/decoded-why-india-s-exports-are-at-a-record-high-1837156-2021-08-05
?[SV6]https://economictimes.indiatimes.com/tech/startups/pharmeasy-to-acquire-66-stake-in-thyrocare-in-rs-4500-crore-deal/articleshow/83842616.cms
?[SV9]https://www.businessinsider.in/here-are-the-top-10-acquisitions-to-have-happened-in-india/articleshow/64112322.cms