Responsible Investment

Investment opportunities in India’s Bottom of the Pyramid are tremendous

September 1, 2011

Image courtesy of Ingrid Ramaan

http://www.youtube.com/watch?v=DaJ4N-1MwVo

“The Bottom of the Pyramid in India is about 850 million people, which is about 75% of the population. Yet, it’s only 20% of the disposable income, so there is a lot of people with a latent demand. Over time, we think that there will be tremendous investment opportunities in this market, certainly in medical technology.”

Jayant Sinha made a study of the characteristics of and opportunities in Bottom of the Pyramid Markets, together with McKinsey & Company Philippines Managing Principal Christopher Beshouri. They see a clear role for investors to boast these markets, with an initiating role for philantropists and impact investors. In a later stage — once the investments have matured — commercial and institutional investors can step in to invest in a way and on a scale that is appropriate according to their investment models.

During a lunch meeting in Amsterdam in May 2011, they presented their thought-provoking ideas about the development of Bottom of the Pyramid markets in India, focusing on two emerging sectors- medical technology and green energy. In this interview, Jayant Sinha talks about the medical technology sector in India. In another interview, Beshouri focuses on the green energy sector. 

Reference

Sinha was interviewed after the lunch meeting, which was held at Duisenberg school of finance, and organized by the Holland Financial Centre, Duisenberg school of finance, the Dutch Initiative for Sustainable Trade and the Progressio Foundation.

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Low-res video (mp4)
Audio transcript (mp3)

Author(s)

Jayant Sinha
Managing director of Omidyar Network India Advisors

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