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How attractive will India look in a post-Covid-19 world? Here's one way to think about it, my latest: Three deals that can measure India’s pulling power #Reliance #Tata https://bit.ly/2Rdt5JS plus thread >>> 1/5
India doesn't have resources to provide extensive support to its people and companies: the government's relief package amounts to 0.8% of GDP, cf 10%-plus in the US and Singapore. That suggests India will struggle face down the pandemic and related disruptions. 2/5
A large part of India's financial stability, as a capital scarce nation, is built on foreign funding. Stake sales by Mukesh Ambani's Reliance Industries and the Tata group, the A-list of India Inc, will be a key measure of long-term expectations for the country. 3/5
Reliance and Tata are looking for partners in businesses spanning oil-to-chemicals, consumer technology and passenger vehicles. It's rare to see these titans prepare to potentially sell off key parts of the empire to buyers like Facebook and Saudi Aramco. 4/5
The success of these deals, mostly to deleverage, will speak volumes about how well foreign investors think the Indian consumer growth story will hold up post-pandemic. If terms on the already sketched out $15 bln Reliance-Aramco deal change, that will be especially telling 5/5
