Not content being a large foreign investor, BlackRock’s boss Larry Fink says India is at the heart of its global platform

• The world’s largest asset manager with assets of $8.59 trillion under management is excited about India.
• Fink says India offers an unprecedented opportunity to transform the asset management industry by launching affordable and transparent investment products.
• Mukesh Ambani says JFS will prove to be an invaluable addition to the Reliance ecosystem of customer-facing businesses.
  

The annual general meeting of Reliance Industries is never devoid of star power. At the 46th AGM of the company, Larry Fink, the chairman and chief executive officer of BlackRock , addressed the shareholders of Reliance Industries, following the announcement of its partnership with the newly minted Jio Financial Services for the asset management business.

Fink said: “BlackRock is already one of the largest non-Indian investors in India today, and India lies at the heart of our global platform... Global investors recognise that India is at the cutting edge of digital transformation, in large part because Reliance and Jio have built a digital and consumer ecosystem unparalleled anywhere else in the world.”

Blackrock, the world’s largest asset manager with assets of $8.59 trillion under management, is excited about India for a variety of reasons. Given India’s young population, digital access and rising affluence, Fink said that there is an unprecedented opportunity to transform the asset management industry by introducing a full-service tech-enabled asset manager with affordable and transparent investment products to meet the needs of every segment of the society.

The convergence of rising affluence, favourable demographics, and digital transformation across industries is reshaping the market in incredible ways. Fink said: “We see growing financialisation and a shift from unmanaged and physical assets to saving and investing, and we expect this to increase as per capita GDP continues to rise and technology advances digital inclusion.

Even though this AGM was not supposed to be include plans for Jio Finance, as it has been hived off as a separate company, Mukesh Ambani said that in the payments business, JFS would consolidate payments infrastructure with a ubiquitous offering for both consumers and merchants, further driving digital payment adoption for India. JFS products will not just compete with current industry benchmarks but also explore path-breaking features such as blockchain-based platforms and CBDC. They will adhere to the highest standards of security, regulatory norms and ensure protection of customer transaction data at all times.

Jio Financial Services will enter the insurance segment to offer simple, yet smart, life, general, and health insurance products through a seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way.

Ambani added that just like Jio and Reliance Retail, JFS too will prove to be an invaluable addition to the Reliance ecosystem of customer-facing businesses. He said that there were three reasons that gave him the JFS would play a critical role in the success of Reliance Retail. The digital-first architecture of JFS will give Retail an unmatched headstart to reach millions of Indians.

Second, RIL has provided JFS with a strong capital foundation to build a best-in-class, trusted financial services enterprise and achieve rapid growth. Reliance has capitalized JFS with a net worth of Rs 120,000 crore to create one of the world’s highest capitalised financial service platforms at inception. He lauded the Jio Fin team under the leadership of KV Kamath, former chairman of ICICI Bank.

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