Indian opposition leader Rahul Gandhi. AFP
Indian opposition leader Rahul Gandhi. AFP
Indian opposition leader Rahul Gandhi. AFP
Indian opposition leader Rahul Gandhi. AFP

Indian opposition parties to 'unite' against Modi


Taniya Dutta
  • English
  • Arabic

Opposition parties in India on Friday pledged to “unite” to fight against Prime Minister Narendra Modi’s ruling Bharatiya Janata Party in the upcoming national elections.

The polls to elect the country’s next government are expected to be held in March and April next year, as Mr Modi completes his second term in office in May.

Representatives of as many as 17 opposition parties on Friday met in Patna city in the eastern state of Bihar to deliberate on a roadmap and launch a joint fight against the government.

The opposition parties accuse Mr Modi’s government of damaging India’s secular credentials by resorting to religious and divisive politics, crushing dissent and targeting political opponents.

Nitish Kumar, Chief Minister of Bihar and leader of the Janata Dal (United) party, hosted the meeting.

It was attended by veteran leaders, including Mallikarjun Kharge, Rahul Gandhi, Mamata Banerjee, Akhilesh Yadav and MK Stalin from the main opposition Indian National Congress party.

“Protecting the constitution and democracy is our sole responsibility. Our meeting is to give a new direction to the country,” Mr Kharge said.

Ms Banerjee, Chief Minister of West Bengal, said: “We are united. We will fight unitedly. Don't call us opposition, we are also citizens of this country.

"We will fight together against the political vendetta of the BJP. Let our blood flow, but we will protect the people and the country. Next meeting will be held in Shimla."

Some of the parties share historical rivalries, but the INC's Rahul Gandhi said the parties were banding together to protect their common interest in uniting the country.

“It is a battle of ideologies. Indeed, there will be differences amongst us, but we have decided to work together and protect the ideologies shared by us," Mr Gandhi said.

The leaders will gather again in Shimla in the northern state of Himachal Pradesh in August to prepare an “agenda to move ahead together in respective states to fight against the BJP”, Mr Kharge said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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Updated: June 23, 2023, 2:18 PM