A glimpse ahead to the next decade of growth in the East
The Transatlantic Post | Love Letter N°31
Welcome to The Transatlantic Post an editorial on innovation and international growth. With occasional British satire. By Kajal
When I wrote the lased edition of the Transatlantic Post at the end of 2020, I had spent several years travelling to and writing from innovation ecosystems of over 25 European and North America cities. From the robotics engineering labs in Zurich to the Geffrey Hinton’s AI labs and corridor in Toronto.
Over the past two years, I have been fortunate see first hand the rising tide of innovation and growth in the Middle East, India and Africa. Or as I have decided to name it MEINA, we can make up the rules on acronyms after all.
My observation and insight has been both through my most recent role as the UK Country Head for the Abu Dhabi Investment Office (ADIO) in London and also by virtue of being British-Indian and a large part of my family based in East Africa.
Having worked with British, American and European companies to grow into new markets for the past decade, I have also heard more loudly the appetite to better understand and grow in MEINA markets.
So what can you expect from 2024 editions of the Post and why should you read it?
As I point my pen to the Eastern hemisphere, you will have a glimpse into key innovation clusters and world-leading programs across sectors in the East. As many of our current readers are from the UK, Europe and the USA, we will focus on significant East-West trade and investment stats and stories. Reading the Post should with any luck give you an insight of what the rising of the East could mean for you and the scale of growth opportunities. And with a dose of non-colonial British Satire.
The next few editions will focus on India and the UAE and to start with some context..
| India-UAE and the cooperation of the titans….
Earlier this year, I attended a breatkfast with the India Global Forum. What caught my attention the staggering rise in trade between the two countries
To give you a snapshot of that growth in the last 50 years, in the 1970’s India-UAE trade was valued at $180 million by 2021–22 this reached $73 billion. In 2022, the two nations signed an historic Comprehensive Economic Partnership Agreement (CEPA)
Beyond numbers, I travelled to Delhi and Abu Dhabi last year and the energy and aspiration especially amongst under 30 age group is palpable. I visited Hub71 an accelerator backed by Mubadala and transforming Abu Dhabi’s tech ecosystem and also finance week at ADGM, Abu Dhabi’s global financial center.
Finance week was attended by the illumanti of the world of capital. An apt tagline of $1.4 trillion of capital under one roof. One of the region’s most influential sovereign wealth fund, Mubadala’s CEO HE Khaldoon Al Mubarak recently echoed the strength of cooperation and investment between the two countries.
“The growth is in the East today,” specifically citing India and Southeast Asia. “It’s in big economies with big populations that are growing..we have a lot more focus today. And we’re building up that capability.”
Mubadala has £4bn+ of invetments in India, including Tata Power Renewables and Jio Platforms joining investors such as Facebook and KKR who are looking for a stake in India’s fast growing digital industry.
More recent announcements have included investment into infrastructure projects including an anchor investmen in Cube Highways Trust, an infrastructure investment trust (InvIT) in India alongside a Canadian pension fund.
CEPA is expected to increase the total value of bilateral trade in goods to over US$100 billion and trade in services to over US$15 billion within five years. It was negotiated and concluded in a mere 88 days. No mean feat and a proxy for what is to come.
“Our nation is on the cusp of take off” Narendra Modi
This was the title of a recent FT interview with Prime Minister Modi. Noted that I am not sharing anything new here on India’s exponential growth but 2023 felt like her pivotal year. From landing Chandarayan -3 on the moon to hosting the G20 Summit.
In high school terms, this is India’s ascension to the most popular kids in the class. They also sit at the front of the classroom, do their homework and are good at maths and IT. An educational commitment which such an integral part of the success story.
For all the criticism levelled at Modi’s government the economic strides and India’s increasing global influence during his tenure are hard to refute.
Data released this month by the UK department of business and trade valued total trade between the UK and India at ~ £40 billion an increase of 24.1% since 2022. However, an ever elusive Free trade agreement is still on Rishi’s bucket list.
For the US and India, the future is looking rosier with the resolution of six seperate trade disputes at the World Trade Organisation earlier this year. India agreed to remove retaliatory tariffs on certain U.S. products, including chickpeas.
No doubt 2024 will be another pivotal year for India and for chickpeas around the world.
A note on being British-Indian….
As a second generation immigrant with a family from Mumbai, I am acutely aware of the experience of dual identity and the tremendous opportunity that can arise from our history, legacy and mutual cultural understanding.
As I wrote this edition of the post I saw a Google doodle celebrating Venu Chitale’s 111th birthday and included her title photo. Venu Dattatreye Chitale a radio broadcaster was one of the first few Indian women hired by BBC, a secretary to George Orwell, and an influential voice in the UK during India’s freedom movement.
Venu Chitale had a unique talent to integrate commentary that challenged stereotypes and misperceptions of Indians into her broadcasts. She also shared stories that brought awareness to the struggles of British women and children.
As India and the East rises, I’ll hope the stereotypes continue to be dispelled and the richness of the East and West complementary skills, economies and culture can work together for the greater good.
Sincerely, yours,
t: @kajalnyclon | w: transatlanticpost.com
References
- Chandrayaan-3: India makes historic landing near Moon’s south pole, BBC
- Mubadala and Canadian pension fund invest in India’s infrastructure investment trust, The National News
- Venu Chitale, Google
About the Transatlantic Post
An editorial on innovation and international growth. With occasional British satire. Written and edited by Kajal Sanghrajka, founder and director of Growth Hub Global. For previous editions go to the Transatlantic Post website. Subscribe at:-
