The Rise of a New Indian Elite

In partnership with

Salutations, Olio aficionados! 👋

Happy Hump Day and welcome to the 97th edition of Weekly Olio - your trusted source for giggles, wisdom, and a dash of intrigue, courtesy of our tantalizing thought piece (yes, buckle up for Publisher's Parmesan). 🧀

This edition of Weekly Olio is brought to you by Business Loans.

Is your business making over $200K in revenue per year?

Compare 2024's top online business lenders. Secure and fast with no impact to your credit score. With over 12,000 small businesses funded, we know how to make lenders compete to give you the best offer. See your loan options in minutes, and get funding as fast as 24 hours. Strongest network coverage for those who have been in business for over 2 years with over $200K in annual revenue. Fuel your business today!

Calculate Payment

The Quote󠀢 💭

The Tweet 🐦

The process of writing physical notes helps crystalize memory in a way that typing doesn’t. And as much as I’m a tech person, electronic systems can be “a coat with 1000 pockets” - if that phrase rings true, a pocket spiral notebook might be for you!

The Infographic 💹

Half of Europe has been colonized by Europe too. Some of Europe has never been colonizers. Go figure!

In partnership with

No need for a sales team with Waalaxy! 👽

• Automatically contact 800 qualified prospects/month on LinkedIn

• Capture your competitors' audience or test a new market

• Find and recruit your next top talents

Try Waalaxy for free

The Short Read 📝

Miniso spends US$890 million to challenge Sam’s Club in China - by Jianggan Li

Jianggan Li is the founder and CEO of Momentum Works, a Singapore-headquartered venture outfit with a global emerging market focus

Many were surprised by Miniso’s decision to invest in Yonghui, as Miniso usually runs small lifestyle stores. Retail experts and the market were confused, causing Miniso’s share price to drop by over 16%. Ye Guofu, Miniso’s founder, posted a mysterious message on social media: “It is right that everyone struggles to understand this move; if everyone would understand, that means I have made a mistake.” What are Ye and Miniso planning? Read more…

The Long Read 📜

How Costco Hacked the American Shopping Psyche - by Ben Ryder Howe

Ben Ryder Howe is a frequent contributor to New York Magazine, the New York Times, and other publications. He is the author of My Korean Deli: Risking It All for a Convenience Store.

Ben Ryder Howe writes a half-praising, half-concerned piece on Costco. Plenty of fun details (they account for half of global cashew sales, supplied by more than a million farmers). In rankings of which companies people trust, Costco comes out on top. They've managed to build a model that's aligned with the revealed preferences of shoppers—i.e. big spending on bulk items—but that's less aligned with what shoppers want to want. Read more…

Publisher’s Parmesan 🧀

The Rise of a New Indian Elite

Saurabh Mukherjea, founder and CIO of Marcellus Investment Managers, dives deep into India's evolving economic landscape in this exclusive discussion. Mukherjea explains how the world's fifth-largest economy is shaping a new elite class, driven by explosive growth in digital infrastructure, SME lending, and mobile commerce. He also delves into the success stories behind India's booming stock market, the surprising rise of women and local graduates leading the charge.

India's economic landscape has been undergoing a remarkable transformation, one that has placed the country at the forefront of global markets. Over the past two decades, India has consistently delivered impressive returns, outpacing many of the world’s largest economies, including the United States. As we delve into the reasons behind this extraordinary growth, it becomes clear that India's success is not just about numbers on a chart but a deeper, more profound shift in its economic structure, fueled by innovation, infrastructure, and a new generation of business leaders.

A Snapshot of India's Economic Performance

To truly appreciate India's economic ascent, one needs to look at the performance of its stock market over the last 10 to 20 years. In terms of dollar returns, India has outperformed almost every other major market. Over a 20-year period, India stands as the best-performing market globally, with a 13.1% return, compared to America’s 10%. Although the last decade saw the United States and Taiwan (driven largely by TSMC) edge out India, the latter still holds an impressive third place, ahead of economic powerhouses like Japan.

This consistent outperformance is not coincidental. It is closely tied to India’s status as the world’s largest free-market democracy, where both political and economic power are vigorously contested. This contestability ensures that innovation and efficiency are rewarded, leading to the creation of a dynamic and resilient economy.

The Engine of Indian Growth: Consistent Compounders

A key factor in India’s success has been the emergence of a large number of “consistent compounders”—companies that have managed to grow their revenues and maintain a healthy return on equity over long periods. In a study of large emerging markets, India produced 162 such companies over the last 20 years, more than any other country, including China, whose economy is four times larger.

What sets India apart is not just the number of these companies but their exceptional performance. While China’s compounders have delivered a 10% return over 20 years, their Indian counterparts have achieved a staggering 26%. These companies, which include giants like Suzuki and Honda, are the backbone of modern India’s economic success.

The Rise of the Challenger Class

Perhaps the most exciting development in recent years has been the rise of what can be termed as the “Challenger Class.” Until a decade ago, India had about 600 companies that could be compared to global giants like Suzuki or Honda in terms of growth and profitability. Today, that number has exploded to 6,000.

These challenger companies, which have been growing their profits at a rate of 15-16% annually over the last decade, are now driving India’s economic engine. Even more impressive is their recent performance, with profits compounding at 24-25% over the last three to four years. This rapid growth is not limited to large, established companies but is increasingly driven by smaller, more nimble enterprises that are seizing new opportunities in the market.

The Drivers of India’s Economic Transformation

Several key factors have contributed to the rise of these challenger companies and the broader economic success of India:

1. Digital Infrastructure:

India has made significant strides in building a robust digital infrastructure. Today, 55% of the country’s GDP flows through mobile commerce, thanks to the widespread adoption of the Unified Payment Interface (UPI). This system allows for seamless, cashless transactions, even in the smallest of businesses, dramatically reducing working capital cycles and enabling businesses to operate more efficiently.

2. Small Business Lending:

The growth of digital payments has also revolutionized small business lending in India. Banks and non-bank lenders now offer cash flow financing based on real-time data from digital transactions, reducing the cost of working capital from 20% to 10% in just four years. This has been a game-changer for small businesses, allowing them to scale rapidly.

3. Affordable Mobile Data:

India boasts the lowest mobile data costs in the world—150th of what it costs in the United States. This has democratized access to information and technology, empowering small businesses to reach new markets and customers through digital platforms.

4. Tax Reforms:

In 2017, India introduced a unified national tax system, replacing the patchwork of state-level taxes that had previously hindered business operations. This reform has provided businesses with a national platform to grow, further accelerating economic expansion.

The Emergence of a New Elite

India’s economic transformation has also given rise to a new class of elite—one that is distinct from the traditional power structures of the past. This new elite is characterized by diversity, education, and a focus on technology and innovation.

Women’s Economic Empowerment:

One of the most striking changes has been the economic empowerment of women. Today, women in urban and metropolitan areas have more bank accounts and more money in those accounts than men. Women are also increasingly taking on leadership roles in both white-collar jobs and manufacturing, driven by India’s shift towards a service-oriented economy where education and skills matter more than physical strength.

Local Graduates Leading the Way:

A decade ago, India’s boardrooms were dominated by graduates of elite institutions like IITs, IIMs, and foreign universities. Today, the majority of board directors come from local universities. This shift reflects the changing dynamics of India’s economy, where practical skills and entrepreneurial spirit are becoming more valuable than elite credentials.

South India: The Economic Engine

South India, encompassing states like Karnataka, Tamil Nadu, and Telangana, is emerging as the economic powerhouse of the country. With a quarter of the population, this region accounts for half of India’s GDP and 60% of its growth. The region’s combination of high education levels, good law and order, and developed infrastructure has made it a magnet for investment, particularly in technology and manufacturing.

The China Plus One Opportunity

India’s economic rise is also being fueled by geopolitical shifts, particularly the increasing tension between China and the United States. As global companies look to diversify their supply chains away from China, India has emerged as a natural alternative. This is particularly evident in sectors like electronics manufacturing, pharmaceuticals, and medical devices, where India is rapidly expanding its capabilities to meet global demand.

The Future of India’s Economic Story

India’s economic transformation over the past two decades is a testament to the power of innovation, infrastructure, and the emergence of a new elite that is driving growth across the country. As India continues to build on these foundations, it is poised to play an even more significant role in the global economy, offering new opportunities for investors and businesses alike. The journey is far from over, and as India navigates the challenges and opportunities ahead, its story will continue to be one of resilience, innovation, and growth.

Can't get enough of this conversation? Us neither! Check out the full episode below to satisfy your craving for more insights and ideas. 😃 

Olio Jobs 💼

Hire offshore talent that come with impressive resumes:

Amira, a Fordham University grad and former JP Morgan associate. Anika, a Kenyon College grad and former Moody’s analyst.

This is the level of talent that Oceans attracts to partner with companies like True Classic, Pattern Brands, and Othership.

Hire full-time, proactive, highly experienced individuals for $3000/month.

Learn more about Oceans

Hire Ava, the AI SDR & Get Meetings on Autopilot

Ava automates your entire outbound demand generation process, including:

• Intent-Driven Lead Discovery

• High Quality Emails with Waterfall Personalization

• Follow-Up Management

Free up your sales team to focus on high-value interactions and closing deals, while Ava handles the time-consuming tasks.

Book a demo to see how Ava can 10x your outbound.

That’s all for this week. If you enjoyed this edition, we’d really appreciate if you shared it with a friend, family member or colleague.

We’ll be back in your inbox 2 PM IST next Wednesday. Till then, have a productive week!

Peeyush and Mohit

Disclaimer: The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual.