Saturday, April 22, 2017

India massively re-engineering its economy, big time growth will result

Seeking Alpha:

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While we are busy discussing policies ranging from protectionism to immigration in the United States, India quietly laid the foundation for a technology empire that is going to digitally connect 17% of humanity. The full potential of India's push for digitization will be realized in time, but in my mind this is perhaps the most exciting technology development happening in the world today.

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India has adopted and almost finished a biometric framework, Aadhaar, that uses fingerprints and retina scans of nearly 99% of its population, which essentially means 17% of humanity.1

This sophisticated biometric database-still missing in the Western world-is being used to connect every way an individual interacts with the overall economy. This will revolutionize the entire economy.

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Over the last year and a half, more than 270 million newer bank accounts have been opened with more than 665 billion rupees coming into formal banking.2 If this weren't enough, all these accounts are linked to the biometric information, increasing efficiency in processes ranging from tax audits to transfer of welfare money and the elimination of middlemen.

There is quite a bit more to what the Indian government is doing with regard to digitizing its economy. Meb Faber interviewed Raou Pal about this and Mr. Pal calls what is going on in India "the biggest macro story in the world". This is why I am investing alongside Prem Watsa. the Canadian Warren Buffet, in Fairfax India for the long term.

This will be one of the major stories of the next decade and very few people are discussing it. That means opportunity before the masses get clued in.

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