Indian Surge for Foreign Investments in Australia
Despite the global economic downturn, the Australian economy
has been able to pretty much sustain itself. Backed by impressive figures, in
an otherwise gloomy global environment, Australia has been attempting to push
the limits of its growth further. It is in this direction that, the country
last year, unveiled the “significant investor” visa program to attract high net
worth individuals (HNWI) who are capable of making substantial investments in
the country, in return for relaxation in permanent residency visa norms.
Indians hold the potential
India, home to more than 7,000 millionaires with combined
fortunes of about US$ 1 trillion, is a key source for Australia to attract
migrants under its “significant investor” visa category. Combine these fortunes
with the $US 465 billion held by Indian nationals living aboard, and it is
roughly equivalent to the size of Australia's entire economy, says a report in the
Sydney Morning Herald (SMH).
According to analysts quoted in the SMH report, Indians have
the potential to invest as much as $US30 billion into Australia, over the next
five years. Trends in this direction are already visible. Considering,
Australia’s rich resource-base, much of these investments from India have been
targeted towards mining and allied activities in the country, with some
investment being made in real estate, innovation and technology.
The Jindal family, who have a major stake in resource-based
industries in India and is ranked among the world’s richest by Forbes, invested
$26 million, last year, to acquire two minor stakes in Australia’s iron ore and
coal mines through their firm Jindal Steel & Power. Similarly, another
resource-based firm belonging to Indian-billionaire Gautam Adani invested US$2
billion to acquire a coal mine in the state of Queensland. Even Indian
government owned National Mineral Development Corporation (NMDC) has been looking
to invest in mining projects in Australia and has created an Australian
subsidiary, Legacy Iron Ore Ltd.
Indian investors are also seeking to tap into the vast
tourism potential that Australia offers. Silverneedle Hospitality, backed by N.
S. Raghavan who is the co-founder of software giant Infosys Technologies, picked
up a Brisbane hotel for $57 million and went on the buy a chain of about 60
hotels in Australia and New Zealand.
Apart from FDI investments, Australia is also been seeking
to attract rich Asians as migrants. With this objective, the country launched
the "significant investor" visa program last year requiring potential
migrants to make sizable investments, in return of concessions in visa norms.
The effort is to competing with New Zealand, Canada and Singapore in attracting
a growing number of Asia's rich.
Such immigration schemes tend not only to bring much-coveted
long-term investment, but also contribute to economic growth and job creation,
says the SMH report.
With Indians becoming the largest source of migrants in
Australia, the “significant investor” visa programme is seen as a viable option
for rich Indian nationals keen to migrate Down Under.
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