Why India First

• Unmatched population demographics: Median age 2020: 26 years and 2050: 36 years
• This is where the worker is:
  • English speaking workforce of immense size like never ending: immortals of the Persian army:
• This is where the consumer is: Per Capita GDP at MER projected to rise 4-5 folds from 2 K to 10 K, a rise seen as the Golden rise
• Focus on Education: Science, Mathematics, Economics, Computer science, Management and Finance.
• Digitalization, Formalization, Financialization:
  • We expect great flow of funds from economy into equities
  • Significant shift in ease of doing business
• Low energy cost ahead:
  • India carried weight of oil or energy cost inflation at 10 % CAGR (INR) over last two decades
  • Energy inflation in our opinion to be low over the next two decades – intermittent volatility notwithstanding. A big plus for energy dependent growth in India.
• Thriving Democracy or the largest democracy
• Equities opportunity:
  • In our opinion, Indian markets remain significantly more inefficient than developed peers: despite great liquidity
  • Last decade Sensex has underperformed the USA, even though Sensex out-performed the USA over 20-30 and 40 years.
  • We attribute last decade under-performance to GST reforms and demonetization
  • Benefits of Corporate tax cut, Demonetization and GST are now in the pipeline
  • Economy and equities displayed great resilience to Covid

The Challenges India and what can go wrong:

• Few monopolies smothering small and medium enterprise.
• Corruption: Political and Big money nexus
• Geopolitical challenges from neighbors to assimilating with global giants