Why India beckons Family Office Investors?
News & Insights
<p>India is <a href="https://tat.capital/should-australian-family-offices-listen-to-global-investors-view-on-india/">one of most compelling economic growth stories</a> globally, but growth is being hindered by the lack of lending by banks to <strong>small businesses</strong>. For providers of private capital like <strong>family offices</strong>, that presents a <strong>huge investment opportunity</strong> and a chance to support Indian development.</p> <blockquote>According to the World Bank, small and medium-sized enterprises (SMEs) account for over <strong>80% of total industrial enterprises</strong> and employ around <strong>117 million people</strong> in India.</blockquote> <p>More than half of these firms are based in rural areas and so they are playing a vital role in raising incomes and lifting millions of workers out of poverty. Others provide the consumer goods, real estate services, restaurants and IT products that the growing middle class is eager to consume.</p> <p>However SMEs in India are starved of the growth capital that they need to invest in their future, as <a href="https://tat.capital/indias-banking-challenges-in-the-fintech-era-and-the-role-of-aussie-firms/">banks</a>:</p> <blockquote> <p><strong>Weren’t recapitalised after the 2008 financial crisis</strong></p> <p><strong>Their estimated non-performing assets of close to 20% on avg.</strong></p> <p><strong>Their risk-averse management fail to lend to the country’s army of <a href="https://tat.capital/8-million-indian-smes-to-process-4-billion-gst-receipts-every-month-the-opportunity-for-anz-fintech/">small businesses</a></strong></p> </blockquote> <p>Result: the <strong>overall gap finance gap in the SME</strong> sector is estimated at <strong>$418 billion</strong>.</p> <p>It’s no surprise that a thriving <a href="https://tat.capital/indias-banking-challenges-in-the-fintech-era-and-the-role-of-aussie-firms/">alternative lending sector</a> has established itself to become an integral part of India’s financial system, along with the support of Indian government for NBFCs through various reforms. The The smart investors who are tapping into it already, are reaping the rewards!</p> <p><strong>Read more</strong> @ <a href="http://www.campdenfb.com/article/why-india-beckons-family-office-investors">Campdenfb</a>, where Vik Mehrotra of <a href="http://www.venuscapital.com/">Venus Capital</a>, the founder of the first India-focused hedge fund in the 1990s, explains why family office investors should meet the Indian demand for capital.</p>