INTRODUCTION

Our Grassroots publication (half-yearly in frequency) focuses on providing its readers with the necessary insights when contemplating, assessing or understanding an investment into India’s fast-growing economy. Whilst many investors are aware of the high GDP growth, driven by the strong fundamentals of a youthful, aspirational and entrepreneurial society, it is the insights into what makes the economy tick, at a grassroots level, that helps navigate a successful path.

Indian equity markets are a concoction of companies which are generally thriving from the pace of the country’s growth in consumption, banking, infrastructure amongst many other industries. Understanding the ecosystem in greater depth is more likely to lead to a successful investment outcome for Australian and New Zealand based investors.

We would appreciate your feedback on the content and quality of this publication.  Please feel free to write to me at mugunthan.siva@indiaavenueinvest.com if you have any questions.

GROWTH OF TIER 2

CASE STUDY: SURAT

No, this case study isn’t about a tiny rural town in Queensland, Australia of 407 people. It’s about India’s fastest growing city, Surat in the state of Gujarat. India’s fastest growing cities have previously been the domain of its Tier I such as Delhi, Mumbai, Bengaluru, Chennai and Kolkata. However, as India’s urbanisation takes place (500 million people are expected to move from rural to urban locations over the next two decades), its Tier II cities are growing at a faster pace. Tier I cities can’t sustainably grow without better infrastructure and have handed over the baton to Tier II, which have less legacy infrastructure issues.