Bank on India’s growth: Truss
Rampant growth in the Indian economy is spawning opportunities for Australia’s financial services sector, Trade Minister Warren Truss says.
With economic growth at 9.5% for the year ending March 31 and an expanding middle class of more than 200 million people, India is one of the world’s most attractive destinations for international investment.
Mr Truss says rising household incomes in India are fuelling demand for financial services.
“In addition to expanding consumer demand, the enterprises that are driving India’s dynamic business environment are looking for providers of financial products – from electronic banking to mortgages, superannuation to insurance.”
The insurance sector in India is valued at more than $US10 billion ($11.84 billion), and demand for insurance is projected to grow 13% a year.
Mr Truss says Australia’s mature and sophisticated financial services industry is well placed to meet India’s burgeoning demand for services.
QBE and IAG are already examining investment in India, with QBE taking a 27% stake in a joint venture with the Rajan Raheja Group last month for $7 million. IAG is reportedly in advanced talks to buy Chubb Corp’s 26% stake in an insurance joint venture with the Housing Development Finance Corporation.
Indian Government statistics show about 20% of the insurable population has life insurance, but penetration rates for health and other non-life products trail behind international markets.
With economic growth at 9.5% for the year ending March 31 and an expanding middle class of more than 200 million people, India is one of the world’s most attractive destinations for international investment.
Mr Truss says rising household incomes in India are fuelling demand for financial services.
“In addition to expanding consumer demand, the enterprises that are driving India’s dynamic business environment are looking for providers of financial products – from electronic banking to mortgages, superannuation to insurance.”
The insurance sector in India is valued at more than $US10 billion ($11.84 billion), and demand for insurance is projected to grow 13% a year.
Mr Truss says Australia’s mature and sophisticated financial services industry is well placed to meet India’s burgeoning demand for services.
QBE and IAG are already examining investment in India, with QBE taking a 27% stake in a joint venture with the Rajan Raheja Group last month for $7 million. IAG is reportedly in advanced talks to buy Chubb Corp’s 26% stake in an insurance joint venture with the Housing Development Finance Corporation.
Indian Government statistics show about 20% of the insurable population has life insurance, but penetration rates for health and other non-life products trail behind international markets.