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The Leader and the Sign of the Times

Global Hubs: Engines for Prosperity

Global Hubs: Engines for Prosperity

Global Hubs: Engines for Prosperity
Silicon Valley today is home to less than 0.25% of America’s 18m businesses, yet the valley hosts one third of the net new business formation in the United States. Further, 39 of the world’s 100 largest tech companies have their headquarters there, including four of the five most valuable companies in the world by market cap. Unsurprisingly, Silicon Valley is also home to the highest concentration of millionaires and billionaires in the country. More importantly, it is the birthplace of the semiconductor, the personal computer, e-commerce, the biotech industry and countless other innovations that have changed our lives over the past two generations. The success of the area has been driven by an unprecedented concentration of resources; Silicon Valley’s dense web of education, talent, ideas, capital, and infrastructure churns out a continuous stream of innovation and new companies that create and dominate new industries. While Silicon Valley is inextricably linked to the modern technology industry it gave birth to, the idea of concentrating resources (with an alignment of purpose) has created similar hubs across a wide range of industries, the world over. What is true for tech is true for any other industry: the concentration of resources in a cluster or hub ensures efficient utilisation of these resources and creates a network-multiplier effect in terms of the quality and amount of output.

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The Maths of India’s Reforms: Where to Next? October 2017

It is undeniable that Narendra Modi has reshaped both India and international perceptions of it during his three years in office as Prime Minister. Having been overwhelmingly voted into power in 2014 on the promise of economic growth, Mr Modi set out to execute a wide-ranging reform agenda focused on domestic development, securing foreign investment and playing a more proactive role in regional and international affairs. Based on macro-economic data alone, it would appear that Mr Modi’s BJP party has been on track to deliver on his promises. GDP growth has averaged 7.5% over the past three years, with growth fuelled, to a large extent by an inflow of US$175bn capital from foreign investors, making India both the world’s fastest growing economy and the largest destination for foreign direct investment. Further, the government has also taken steps across a wide swathe of areas such as infrastructure development, financial inclusion, digitisation, foreign investment and graft, in its bid to secure the country’s long-term growth potential. A previous Sign of the Times had assessed the BJP’s performance in terms of reforms at the 24 month mark following the general election. With less than two years to go until the next general election, this month’s Sign of the Times takes a closer look at India’s progress both economically and in terms of its reforms in order to assess the Modi government’s performance. More importantly, it identifies the core priorities yet to be addressed to make advances towards its medium to long term potential, thereby providing the agenda for the next stage in the journey.

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Digital Shock: How Our World is Being Transformed October 2017

Digital technology features as the enabler to overthrow governments, corrupt elections, reveal secrets, destroy jobs and undermine the integrity of major corporations. It is now one of the major disruptive forces at the start of the 21st Century. It is also very clear that the underlying digital data being generated by individuals, companies and governments combined with the capabilities to sort, filter and analyse this data will transform – threaten and enhance - our economies, our societies and even our political systems as we transition fully into the Information Age. In a new series over the next 12 months, the Sign will look at how digital technology is changing our world through a series of lenses and assess its socioeconomic and political impact, as well as broader implications for the global order as a whole. In the first of this series, this month’s Sign provides an overview of the how digital technology is already changing politics, society and commerce and how this might develop over the next decade. The next parts of the series will drill down into implications and challenges and the final part in the series will put forward a perspective on how individuals, societies and states will need to prepare for the digital future.

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India’s Transition to the Information Age, and the Sectors Driving This September 2017

India’s attractiveness as a destination for international investors has been increasing in the context of both its projected high growth as well as the ongoing shifts in risk among major economies and investment destinations. A previous Leader in the Sign of the Times demonstrated how India was improving its relative positioning in terms of risk-adjusted returns vis-à-vis other major markets, having not only improved returns during the past decade but, uniquely among major economies, having simultaneously reduced risk. In order for international policy makers seeking to build their relationship with India and also for international investors seeking to participate successfully in this market, they will need to form a clear view on the sectors that will drive India forward. This will require them to understand the value, growth and risk dynamics of India’s various industries, and how they are changing. The Modi government has developed an ambitious blueprint for the future of India encompassing increasing manufacturing, agricultural reform, and the growth of services, particularly in the digital space. However, the nature of Indian industry stands to be quite different from the rest of the world’s given that its mass industrialisation is occurring in the information and internet era, while all other major economies came of age in the industrial era . This more than any other factor needs to drive both policy decisions at home and abroad as well as investment allocations abroad. Any successful India allocation strategy will also need to tap into the country’s core macro-economic drivers, aligning with government priorities and recognising the local and global challenges facing potential target industries. This imperative is not lessened by the more free-market characteristics of India. Indeed, it may be even more critical for a successful investor to understand sectors where there is less government-led surety of outcomes. This month’s Sign of the Times examines the risks and opportunities facing major industries and their sub-sectors in India in the face of its unique transition, and attempts to provide a perspective on how international investors might participate in the most attractive segments of the country’s economy.

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Good News

Good News

A quick preview of the good news

Addressing India’s Literacy Challenge

The Frontline

Addressing India’s Literacy Challenge
A brief discussion with Sourav Banerjee, India Country Director for Room to Read, a global non-profit organisation whose mission is to tackle the problem of childhood literacy across the developing world

Investing in the New India Story

The Investor

Investing in the “New India Story” – a brief guide to the key considerations
Also: Analysis of GST and its implications for investing in India

The Big Picture TEST, Metrics

The Big Picture TEST, Metrics

The Indian economy expanded by 6.3% during the third quarter of 2017, rebounding from its three year-low of 5.7% during the previous quarter. China’s economy continued to show signs of improvement in October, with growth in both manufacturing activity and trade.

Last Month Through China’s Eyes

Last Month Through China’s Eyes

19th National Congress of the Chinese Communist Party, Xi’s elevation to the same level of authority as Mao in China, and no mentioning of successor to Xi

This Month Through India’s Eyes

This Month Through India’s Eyes

Retrospections on India’s demonetisation, recent GDP growth rebound, and Reserve Bank of India’s potential interest rate cut

Pointing to the Future

Pointing to the Future

India and the Quadrilateral Security Dialogue, inequality in India, inter-state constraints on labour migration, assessment of Xi’s political prominence in China, China’s international development aid, North Korea and China

Big News

Big News

Modi’s visit to Philippines, India’s credit rating upgraded, Ivanka Trump visits India, Trump’s visit to China, China sends envoy to North Korea, China tightens asset management product regulations

About Greater Pacific

Greater Pacific Capital is an investing institution designed to identify and develop investing opportunities based on the use of distinctive global macro thematic thinking, strategy development and the application of capital to its selected target markets Read More

vision and history

To create the leading platform to finance the growth and international positioning of enterprises in its target areas which for its first funds are in India and establish other links with global economies Read More

ideas and thinking

Succeeding in situations that are dynamically shaped by the aspirations of rising peoples, their society, markets and rapidly changing environments - where rules seem to apply but are often rewritten and so require unusual thinking. Read More

investments

We recognise the complex, nascent and rapidly developing and volatile nature of this ancient country's modern markets and economy as they grow and expand internationally and seek to work as partners with leaders who wish to create value from ideas. Read More

team

Our people are international and local, measured and open, imaginative and mathematical, a team and individuals, principals and counsel, skilled and learning... learning to open their own boundaries and others. Read More

philosophy

Our philosophy guides us and also places high demands upon us as we journey in a world that is changing dramatically all around us ... we endeavour to appreciate that the journey itself will make us more fit to journey. Read More

our locations

Greater Pacific Capital operates out of offices in Mumbai, Shanghai, Singapore and London. The firm's investors are international including from the US, Canada, Japan, Europe and the Middle East. Read More