Indian growth good for Australian financial services

India’s booming economy is driving significant growth in demand for commercial and consumer financial services, Australian Government Minister for Trade, Warren Truss, said today. This growth is creating opportunities for Australian businesses.

Mr Truss said that India’s growing GDP and household incomes are creating higher discretionary spending and burgeoning consumerism that are fuelling demand for a broad range of Australian financial products and services.

“The world’s largest democracy now boasts a 200 million-strong, middle class which increasingly expects access to sophisticated, world-class financial products – from electronic banking to mortgages, superannuation to insurance,” Mr Truss said.

“In addition to expanding consumer demand, the enterprises that are driving India’s dynamic business environment are looking for providers of financial, banking and investment products to support their continuing growth.

“Australia’s financial services industry is one of the most mature and sophisticated in the world with a reputation for flexibility, strong governance, and innovative products. It is well placed to meet the needs of consumer and commercial customers in India.”

Mr Truss said that India is already a vast market that is set for substantial growth.

“Demand for insurance is projected to grow by 13 per cent annually. With only 10 per cent of Indian workers currently covered by retirement plans, the scope for expansion in this sector is enormous.

“India is now our sixth-largest export market, with service exports a major part of this deepening commercial engagement, service exports increased by 26 per cent last year to reach $1.5 billion,” Mr Truss said.

To promote closer engagement between India and Australia’s financial services sectors, Austrade and KPMG will present a series of seminars next week in Brisbane, Sydney and Melbourne.

Austrade’s New Delhi-based Senior Trade Commissioner, Mike Moignard, said that the Australian financial services industry has key strengths and capabilities which can be leveraged in the Indian market, including the capacity to develop new products and services that cater to the needs of a large and diverse customer base, effective work and distribution models, and expertise across varied finance services.

“Australia and India enjoy a close relationship based on our existing economic links and shared cultural and sporting history. This gives Australian companies an advantage over many countries but we should never take this for granted,” Mr Moignard said. “Austrade now offers representation in 10 Indian cities and can provide support, market intelligence, regulatory advice and referrals to Australian financial services enterprises looking to expand in the Indian market,” he said.

For further information on the Austrade/KPMG seminars visit www.austrade.gov.au or contact Austrade on 13 28 78.

Media Inquiries: Minister Truss' office 02 6277 7420 - Departmental Media Liaison 02 6261 1555