Gina Rinehart Loving India
I am feeling very confident being an NSL shareholder, very exciting times coming for journey that is just getting started !
View attachment 537180
There is one thing in particular that your Prime Minister said that really caught the world’s attention: Quote “No red tape, only red carpet, is my policy towards investors.”
I borrowed part of this phrase for the title of my second book, “From Red Tape to Red Carpet,” which was co-launched in India by Prime Minister Modi in 2015, and is available to you all today.
Prime Minister Modi’s leadership and red tape reduction has transformed India.
India is now the fastest growing major economy in the world – lifting living standards and bringing many out of the misery of poverty – a very significant accomplishment and one that many countries respect.
In addition, the Indian inflation rate has dropped, and according to business newspaper Live Mint, foreign direct investment has been growing at an annual average rate of over 28 per cent over the last three years resulting in India hitting a high of over $46 billion of foreign direct investment in 2016.
Leading global bank Deutsche Bank estimates that foreign direct investment in India this year will exceed that of 2016.
Just last month, Prime Minister Modi’s vision was given further enthusiastic support with his party’s landslide win in your most populous state, Utter Pradesh, home to one in six Indians.
This shows that many of your fellow citizens understand Modi’s vision for an India where government tape has and is being significantly reduced, living standards are rising, investment is increasing and India is clearly open for job creating investment and business.
What an exciting country for entrepreneurs!
India’s mining and resources industry and its potential
Fortunately, for India, the situation is now different, and your mining and resources industry has a huge capacity to grow.
Across India’s vast landmass, around 89 minerals are produced and the mining industry currently makes up about 2-3 per cent of GDP.
According to an Ernst and Young study, only 7-9% of India’s mineral resources have been explored.
This estimate highlights the enormous potential for future mining exploration across India.
I see a bright future for the resources industry in India as there are a number of factors that contribute
Firstly, and as I outlined earlier, the reform agenda of your Prime Minister plays a critical role in this, from red tape to red carpet.
Prime Minister Modi has welcomed investment and businesses to India.
Also working in India’s favour is your large population who are wanting to work.
To construct new mines and their required infrastructure, thousands of workers are needed and with your large population, you are able to meet these needs and provide jobs to many who need them. As well as further opportunities for the many related industries.
The bus driver who drives workers to site, the local food vendor who feeds the workers and the factory worker who makes the uniforms, the people who need to be employed to clean the uniforms and the mining camps, all these and many more, stand to secure greater prosperity if mining exploration and production in your great nation accelerates.
Moreover, India is closely located to Asian countries whose demand for mineral resources continues to grow.
Closer proximity to the end customer means the advantage of lower transportation costs.
India’s own strong economic growth is a huge advantage as well.
As the economy grows, local demand continues to increase, and for those companies needing mineral resources, close domestic proximity is a significant advantage.
Indeed, much of the world’s cutting-edge technology is invented, developed and made in India.
And, India has the huge benefit of many intelligent and hardworking entrepreneurs.
A good friend, who also was an intelligent and hardworking entrepreneur, knowing I was speaking to you this evening, sent me a little joke which I’d like to share, which highlights some Indian ingenuity. Hope you like, it goes like this.
One day a businessman walked into a bank in Mumbai and asked for loan assistance. He met a loan officer and told him that he was going to Europe on business and wanted to borrow Rs. 300,000. The bank officer told the businessman that according to bank policies, the bank will need security for a loan. So the businessman handed over the keys to his Mercedes car which was parked in front of the bank. The bank agreed to accept the car as security. The bank employee drives the Mercedes into the bank’s underground garage and parks it.
Two weeks later, the businessman returns and repays Rs. 300,000 and the accumulated interest on the same which was Rs. 900. Puzzled, the loan officer asked the businessman “we are very happy to have had your business, & the transaction worked out smoothly, but I am a little confused. While you were away, we researched you and found that you are a multi multi-millionaire, then why would you bother to borrow Rs. 300,000?” To this, the businessman chuckled and replied, “where else in Mumbai can I park my car safely for two weeks for just Rs. 900?”
Conclusion
In conclusion, I believe India has great potential.
I stand here before you, not with any view as to needing to say what would be best for you to do, as I have already heard from your fine new High Commissioner to Australia about India’s plans, and unlike Australia, you are already heading on the right path.
Prime Minister Modi is ploughing through government red tape leading the way to help your mining industry.
But I would like to add from our experience in Australia, it needs to be not just the federal government who leads the way, the respective state governments need to do so also, should India want to benefit from an expanding mining industry.
My father spent around eight years of his life encouraging the federal Australian government to lift the export embargo on iron ore, which was preventing not only export, but also people wanting to search for iron ore.
But he was still stopped by the state government, who had imposed pegging bans, preventing the securing of title to ore discoveries.
This delayed development, caused considerable financial damage to West Australia, given Asia had become aware of the tonnages lying in its backyard, so to speak, hence affecting the price of ore contracts given recognition would be a buyers’ market.
For major mining projects to be developed, they require huge amounts of capital and stable and reasonable government regimes, as these huge investments do not show returns for many years, and have to cope with the risks of commodity price changes, currency changes, natural events, and more.
India can be the engine room of global growth if it continues on its current path, and India can be with its large resources and potentially more from currently unexplored areas, and with its entrepreneurs, one of the most successful resource nations on earth.
An exciting future, and in our future I look forward to welcoming Tom Albanese to Canberra in Australia in November, for our National Mining and Related Industries Day, and learning how India has progressed in its mining industry since today.
Thank you. And, watch out Australia!
Full article below
http://www.theaustralian.com.au/bus...a/news-story/aab1ac3909b4be1152800fd78b00bc94
![](http://pixel.tcog.cp1.news.com.au/track/spp-api/v1/widgets/newscorpau_ads-878/?format=html&spp_api_key=XuE5eOv3o2Wa4WcljO6E3aQVo8rkmgUVthUN6TtOg-Y&t_product=the-australian)
![](http://pixel.tcog.cp1.news.com.au/track/spp-api/v1/pages/?spp_api_key=XuE5eOv3o2Wa4WcljO6E3aQVo8rkmgUVthUN6TtOg-Y&spp_api_pagename=story/business-default&t_product=the-australian&t_domain=theaustralian.com.au&t_contentType=application/json&td_pagepos=right-hand-column&td_myprimarycategory=business-default&td_mysecondarycategory=business-mining-&-energy&td_startcount=0&td_stopcount=999&t_template=s3/austemp-article_common/vertical/spp-widgets)