Investcorp outlines opportunities driven by urbanisation in India

Investcorp, a leading global provider and manager of alternative investment products, yesterday outlined investment opportunities in India that are being driven by urbanization. The whitepaper, “A Different India: Opportunities from India’s Urbanization Dividend and Structural Reforms” was launched on the sidelines of the first India Information Sessions curated by Investcorp in Mumbai.

The whitepaper estimate that India will add 360 million people to its urban areas between 2018 and 2050. Based on urbanization levels, India appears today to be where China was in 2000, with Indian cities already contributing 75% of the country’s GDP. The analysis determines that the impact of India’s projected urbanization is 65x larger in comparison to the United States during the second industrial revolution of the 20th century.

Furthermore, the Government is changing the political and economic landscape with several transformative pro-growth initiatives. These landmark reforms will provide easier access to a single economic market, which is fast approaching its entry into the top five global economies.

Mohammed Alardhi, Executive Chairman of Investcorp said, “We are committed to identifying opportunities that align with our investment thesis in India under the overarching umbrella of investing in businesses and real assets that provide access to high-quality goods and services for mass-market consumption.”

Rishi Kapoor, Co-Chief Executive Officer of Investcorp added, “We are leveraging these opportunities in India by backing a new breed of entrepreneurs that are building efficient and scalable business models that meet the needs of a young, middle class, urban population by providing goods and services at an affordable price point through innovation.

We remain bullish on India’s long-term trajectory.” The whitepaper notes that additional changes are necessary in corporate governance, policy clarity and stability, tax reforms for foreign investors and investment infrastructure, before the true potential for growth from India becomes a reality for foreign investors.