A Large Mini India in Dubai - Bharat Mart
Green Portfolio
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Thanking Wholeheartedly
Anchal and Isha, Green Portfolio
In this Issue:?
Let’s start with our detailed subject of this issue. You might know that a new Hindu temple just opened up in the UAE and PM Modi went for its inauguration, but do you know that the foundation for a much bigger establishment was also laid by Mr. Prime Minister during his trip?
A Place That Reminds Of Home: For Indians In UAE ??
Last month, the foundation for Bharat Mart, a mini India was officially laid in UAE. I was reading about the marketplace when I came across some facts about India and UAE’s cultural and trade relations. As I was reading about it, I went from Bharat Mart to CEPA to BIT and more. Initially, I was going to talk about just Bharat Mart today but now that I know how interesting the overall relations are, I won’t keep myself from sharing it with you.?
UAE is the second home for almost 4 million Indians, maybe even the first. I am sure you’d have a friend or an acquaintance residing in the Emirates too. After all, the UAE is one of the easiest countries for Indians to move to which has resulted in: a) Indians making up over 38% of the UAE’s total population, and b) UAE being the country with the largest number of Indian immigrants. It goes both ways.?
This calls for well-functioning trade and cultural relations between the countries, and over the last decade, Prime Minister Modi has been extensively working on establishing these relations. PM visited UAE just last week and signed multiple agreements.?
By now, India and UAE have splendid international relations fueled by multiple agreements and pacts over the years. In fact, a mini India called Bharat Mart is now opening up in UAE. Let me start with that!
Bharat Mart, as the name suggests is an Indian mart, but it’s not like your usual supermarket. Bharat Mart, which is to be spread across 2.7 million square feet of land (Phase 1 is 100,000 sq ft) is going to be a mega project. It’ll house over 1500 showrooms, light industrial units, offices, and most importantly - a huge warehousing space for both B2B and BC2. By 2026, it’s expected to be a functioning marketplace in the heart of Dubai, the Jebel Ali Free Zone or JAFZA. It’ll be more than just a place for Indians in the UAE to visit when they’re homesick. Let’s see how:
Overall, the establishment holds great significance towards helping India’s SMEs with exports and increasing India-UAE’s bilateral trade relations.?
Bharat Mart will also serve as a competition to China’s Dragon Mart. Let’s talk about the Dragon Mart to understand how! ??
China’s Dragon Mart first set up in the UAE in 2007 serves as a hub for both Chinese residents in the UAE and a marketplace for some of the cheapest products in Dubai. The place gets about 40 million annual visits even though there are only about 300,000 Chinese expats in the country. Think of the scale Bharat Mart can have with the number of Indians and South Asians residing in UAE.
??Fiscal Fun Fact: Only about 11.5% of UAE’s total population is Emirati, the rest is all expats!?
That’s all about Dragon Mart, the globe is shifting focus away from the dragon, and so shall I.?
DP World - The Company Building Bharat Mart ???
This Emirati logistics company is helping Indian businesses go places (literally), and the Bharat Mart is not the first medium. Around 3 years ago, DP World announced the India Business Incubator inviting Indian startups to Jafza - the same area that will now house the Bharat Mart. DP World offered Indian startups massive subsidies and incentives to set up a base in Dubai. Why am I talking about it now? DP World is owned by the government of UAE and its steps to help India are indicative of UAE’s support to India.?
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India-UAE Relations Over The Years ??
It was in 1972 that trade officially got some attention from the two countries as diplomatic trade was established. However, things took up pace in 2015 when PM Modi first visited the UAE. It has been flourishing since, take a look at the graph for an insight.?
UAE is our second-largest export destination and third-largest trade partner, but currently, the trade mainly consists of India’s oil imports. Both countries have been trying to change this for some time now.? The broad aim here is to increase the non-oil trade between the countries to $100 billion over the next five years (from the current $60 bn).?
I won’t bore you with the details of every agreement and pact but I will list down a couple of significant agreements that have been taken up by the countries lately.?
Comprehensive Economic Partnership Agreement - Feb ‘22?
CEPA was signed to boost economic relations between the countries. This is where the $100 bn non-oil trade target came from. It has given zero duty to 90% of products from India, elimination of tariff duties by both countries, and more steps to smoothen up trade.?
Bilateral Investment Treaty and Agreements - Feb ‘23
It’s a lot of pacts and agreements but the takeaway here is that India and UAE are establishing strong relations fueled by cultural, religious, and economic ties.
Jamnagar: More than just a venue for the Ambani wedding
I’m sure you would have seen pictures of Anant Ambani and Radhika’s wedding at Jamnagar, after all, the marketing game is very strong. This wedding has become the event of the year with people from all over the world like Bill Gates, Mark Zuckerberg, and Sunder Pichai expected to arrive for the wedding.?
However, this is not the most interesting thing about the town. Jamnagar was not as beautiful 30 years ago as it is today. You see, in 1997, Reliance’s factory in Jamnagar was causing a lot of pollution and it received a notice from the Pollution Control Board. But Reliance started planting Mango trees as a way to control pollution. Today it is the largest exporter of mangoes in India, with Asia’s largest mango Orchard with over 200 varieties of mango. This is a true example of how you can convert your weakness into strength.?
Finally, I can’t help but mention India’s amazing GDP growth numbers for the quarter. We have reported a whopping 8.4% growth during Q3. No one was expecting these numbers, neither any economists nor the Dalal Street experts. It’s mind blowing, right?
From the Wise Investor ??
“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.” — George Soros
From the Curious Investor???
Government just released Q3 GDP numbers. The GDP for the quarter stands at whopping 8.4%. The curious investor in us wants to know if this is the real GDP or the nominal GDP. Brownie points if you can also tell us the difference between Headline and Core Inflation. Send your answers at [email protected]
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Happy Investing,
Anchal and Isha
CFA Level 1 Candidate | MBA Finance(Equity Research and Investment) | NISM Series-VIII Certified(Equity and Derivative)| NISM Series V A - Certified (Mutual Fund Distributor)
11 个月Hllo Team of the green portfolio .