Transcription
The chairman of Reliance Industries, Mr. Mukesh Ambani, and the chairman and CEO of BlackRock, Larry Fink, to please join us on stage. Ladies and gentlemen, a big round of applause for the two leaders who join me [applause] in a conversation on what it will take to invest in a new era, the trends that will shape our investment choices. Hey Shireen, how are you?
>> Good to see you.
>> Good to see you.
>> Good to see you. I think they want a picture so we can the two of you here. [clears throat]
>> Thank you,
>> Mr. Ambani. Larry Fink, thank you very much and welcome to uh a warm sultry Mumbai from a very cold Davos. Larry Fink uh where where you were in the throes of conversation with world leaders about the world order or the world disorder. So let's get started with that. We're talking about investing in a new era. What are the the changes that you foresee that will shape the investment choices, the investment decisions of leaders like you as we look at this new era?
Well, first of all, it's great to be here in Mumbai. It's great to spend time with my partner Mukesh and the entire Reliance Jio team. So, it's a it's a real honor to be here. Uh weather is nicer here than it is in Davos and much nicer than New York where I had our board meeting last week. So, it's good to be here. Um [clears throat] you know we talk about a new war era to give people a foundational understanding where we are um but um as an investor I don't look at any error. I mean our job is to be having people focus on the real opportunities to invest over over a lifetime. There's so much information that confuses people. Um [clears throat] media talks about the moment, the velocity of money and the reality is for most people they need to be in a position to grow with each each and everyone's country. So when you think about the growth of India, it's not a quarter, it's not a day or week, it's not a year, it's it's a it's over a long horizon. And you could say maybe this is the era for India >> and over the next 20 25 years. But if you use that as a foundational paradigm that we all want to think about the era of India, forget about the era of investing for a second. But the era of India, the key for us, the key for Jio BlackRock is to compel more people to understand what does that mean, the era of Indian, how do you participate in it? What we've learned in the United States for that that segment of the population that had invested with the growth of America, they're far better off than those who just kept all their money in a bank account.
>> And so the key is if you believe in the era of India, forget about the era of India investment, the era of India, which I believe in, we need to get more people investing alongside the growth of the country. And that's the role of the capital markets. That's the role of what we can be doing together. And to me, whether it's, you know, you want to focus on AI, you want to focus on how we live, how we grow, how we educate ourselves, to me those are subsets of the the era of India and the opportunity to be an investor alongside the growth of India. And to me, that's a compelling story. It's not about, you know, about tariffs or President Trump or any anything else that's top of mind. We need to be compelling people to think about the horizon of investing over a long period of time to grow with the great companies of India to be a part of that and to participate in that and I I I'm absolutely convinced if you believe in that the era of India we need to compel hundreds of millions of Indians to invest alongside the growth of India and that will actually transform India in so many ways because as more more and more families invest alongside the growth of India. India has less needs for the importation of capital and I do believe the combination of importation of capital by from foreign investors who believe in the era of India but the fundamental foundation of any country is having the domestic economy being built on the back of retirement savings on the back of excess savings to invest alongside of that.
Well, thank you very much for those opening remarks and uh you know the error of India says Larry Fink, that is certainly going to be one of the headlines that that goes out uh uh this evening. But if I could ask you to explain to us what excites you the most about India. You referenced the tariffs and uh you know we've had a deal with the US overnight. President Trump and Prime Minister Modi have signed off on that reciprocal tariff agreement. Uh so the overhang has lifted at least on one aspect of that relationship. How crucial a development is that and what excites you the most about India today?
>> Well let's be clear over 20 years it had no bearing. Maybe over the next six months or a year it had some significant bearing but over time the f [clears throat] the foundational issues of India how it's able to leapfrog. I mean you you watch what what has over the last I would say since the era of the smartphone and I think that's a pivotal point 2012 was I mean think about your life before the smartphone here in India but the beginning of the smartphone the roll out of 5G and how that transformed India in so many ways when you think about how the Modi administration digitized the rupee and how it transformed commerce in India across the board I am very worried about other countries even the United States is falling behind. We need to be digitizing. We need to be thinking about how this all plays out. I think this is this is part of the democratization of India and it's a it and so now India is a leader in this and so I I could cite many things that give me optimism but the fundamental opportunity is is the huge intellectualism of India that transform what technology whether the technology was created in the US or somewhere else in the world the dispersion of that technology in India is really what is so inspiring and the utilization of the new technology for more and more people and how that transforms commerce consumption information uh education all of that is ripe for real solid growth um and I I agree that India has over the next 10 plus years it's it's going to grow anywhere from you know 8 to 12% probably hovering around 8 to 10 and that's a place where I would have personally invested and and what we need to do is compelling more Indians to invest alongside that growth.
>> Well, we we certainly hope that more Indians are going to be investing in that story as well. And speaking of of one such Indian, Mr. Ambani, let me talk to you about uh Larry Fink's praise of saying that this is the era of India. Now, you've seen India over the last two decades transform itself in many many ways, especially as far as the digitization era is concerned. Specifically, what excites you? What is compelling about the India story today? How have you seen it being transformed?
>> Well, Shireen, before I answer that, let me warmly welcome uh Larry and I'm grateful to Larry to again come back to India. It was a conversation that uh we had uh in 23 and it just took him took me five minutes to saying Larry BlackRock should be back in India and he said >> that's that's all it took 5 minutes. you >> I think less [laughter] >> a car ride. We had to go to point A and point B and we accomplished it in a car ride >> in terms of uh and you know here you are with your full team and we have launched uh uh the business. So thank you for again coming back to India and India warmly welcomes you and your colleagues and to all my colleagues from the industry and the financial community a very warm welcome and we look forward to working with uh each and every one of you. As uh uh Shireen said, I think that you know Larry there is a old Indian saying that a tree only attracts attention if it bears fruit >> and today in this new era as you described it, India and the tree of the Indian economy is bearing fruit with great visibility with sustainability and abundance as Everybody said right we are confident like we are the largest growing fast economy economic growth in the world 8 to 10% is uh possible and doable and I think that sustained double digit is not ruled out so that gives us the and that is why we are after a long time attracting all this attention and this has happened primarily Because I think that the last 10 15 years right we had two successive periods. We had 10 years of Manmohan Singh where we focused on growth and then we were very lucky to have now consistently 15 years of very stable leadership. So stable economic leadership defines a country and I think that we cannot we have to be thankful to Prime Minister Modi for giving us this stability now for like going in by 2029 it'll be 15 years >> I also think that we've got a very what is different about this is we've got a very clear goal a goal in terms of saying we have to be developed Viksit Bharat by 2047 which every Indian aspires to and has started believing in second we've executed at scale right while as uh Indians we like to criticize ourselves and we are not uh you know and it's a good thing in a democratic mindset but uh if you see we've built more roads in the last uh 15 years than any other like multiple times than any other country including including the United States at its peak. We've built like power capacities. We have now the leading renewable power producer in the world. We've built in our own industry uh digital capacities 5G that is better than most people in the world and cheaper than most people in the world in terms of part and now every Indian village has got 5G. So and I can go on like we've built the same thing in terms of infrastructure the roads that you see in Mumbai for a long time. We said that we will connect Mumbai to uh the mainland and we now have the bridge that is running. So we've executed we've also had policy which is sustainable. So even when you see between governments right we all thought that Aadhaar was uh uh the earlier government's peace. I think this government was wise enough to saying we've had continuity in policy at at all times in terms of that we've had stability, we've had predictability, we've also been conservative. So as uh Indian successive finance ministers, we've always maintained our debt in order relative to global debt. We are still 50% of GDP as debt. So we are not like the world norm is now 100%. So we've had and I think that we've also in the private sector and what excites me the most is the startup industry. When I interact with startups and we see young 28, 30 year olds starting up companies and I can clearly see right 100 new alliances in terms of where and the aspiration the confidence that they have and finally it is the confidence that you see fortunately we now operate across the length and breadth of India. So it's not only the confidence in forums like this but when you see the confidence in young people going to school and colleges wanting and in parents today believing that their tomorrow is better than today right and that is a big big change in India that all of us this is our baby boomer generation this is the Indian generation that believes that they'll make a better tomorrow than today and that's the confidence that we see as a result of all of this and I I don't want to rule out like when everybody we've also had right at least I think a sustained 15 20 years of great law and order right and that is a prerequisite to continuous economic growth social harmony all of these things matter in terms of that and hopefully like we are now setting the foundation for many many decades. The world sees that and that is why you know even like after the budget we had the European treaty we had fortunately the US so the world is looking at us uh we have like and we at Reliance get at least every month three or four global majors we cannot say yes to everybody for partnerships in terms of saying we want to come to India and can we work together so the world is taking notice of India. It's a tree laden with abundant fruit and you know I have always believed that for profit and for prosperity nobody needs an invitation and that is why we are attracting all the people and I think this is very very sustainable over the coming decades like >> sustainable for the coming decades and 100 more reliances in your words from the startup ecosystem if that is uh uh you know comes true and that bears fruit it'll be a very very different economy as you point out Mr. Ambani but you know I I just I want to understand from you since we're talking about Jio BlackRock, we're talking about the opportunity for India's financial sector a lot of people are asking is the ambition and the aspiration to disrupt this business just as you did with telecom Mr. Ambani.
>> Well, our ambition and aspiration starts with, you know, what I admire about Larry, right? And uh Larry is not only right, the result-oriented CEO of US uh top global multinational, right? But I think that he has a very compassionate and passionate heart, >> right? when he told me that look like at the end of the day purpose of BlackRock is not to just make short-term results or not even to make returns right for uh my investors and my shareholders right if I cannot put this money to work first for the betterment of society and as a byproduct I give my investors and shareholders returns then I would have done my job and that is the Reliance philosophy too. We've always believed that uh at our minds match and the purpose of Jio BlackRock right and I think that uh disruption is fashionable but the opportunity that we see is that Indians have really been savers right right from if you look at our history we are we have saved consistently over the last five six decades >> what has happened is that some of This saving has not been productive. If you see just the last year, right, we as India imported $60 billion worth of gold and we imported 10 to 15 billion worth of silver >> and all of this not for industrial use but really for domestic savings in terms of now this is unproductive. If we can actually convince the Indian saver that if one invests in the capital markets in a safe, transparent and consistent way. There are returns and these returns we heard from all the three panelists compound and for us at Jio BlackRock the opportunity is to encourage Indians to save but to make sure that we give them the options to convert those savings into earnings and hopefully compound their earnings so so that they not only work for themselves but they also work for the Indian economy and that propels the Indian economy to grow in terms of what we want to do and then we all grow together. So yes, if you call that disruption, we will use technology distribution to achieve that for every Indian, for every Indian household, for every Indian small business and large businesses. That's our objective.
>> So, let [clears throat] from the foundation in the beginnings of BlackRock um we never focused on targets of growth ever. And yet our [clears throat] focus has been relentlessly on the client. Whether it's a client who's awarding us a hundred rupees or a sovereign wealth fund who is awarding us tens of billions of dollars. If you are working on behalf of each and every client and you're serving that client over a long horizon with good advice uh with u maybe uh a degree of safety and importantly just confidence building about the opportunities of compounding over a long period of time through the utilization of technology to intersect more often more frequently to have deeper broader relationship with your clients. Um, that's how disruption occurs. But disruption does not occur because you set a target. The target is making sure you're living with purpose every day with each and every client. And if you can achieve that with consistency day after day, clients will reward you with more share of their wallet. And so to me, it's just a it's a process. It's a it's a process you have to earn every day, live every day. And if you do that properly and you embedding embedding embedded that in the culture of the firm we could be disruptive but you can't be otherwise >> yes we can't be otherwise you need to have the alignment of values and then of course everything else builds on top of that but Mr. Ambani. Let me come back to you on the uh investing in India's growth opportunity and this new era that we're speaking about and the role of making strategic choices today which will require patient capital and I want to understand from your perspective what it will take actually to build patiently with patient capital over the next two decades.
Well, I think that uh the Indian opportunity as we stand, we stand at about four 4 and a.5 trillion dollars of uh GDP in a $110 trillion world, right? I like see us outgrowing the world and finding our right place. So I am one of those believers who think that this 4 and a half in in a 20 30 year period right will outgrow the rest of the world and we will hit 2530 trillion it's going to be 30 years from now but as we do that the India opportunity is a 10 20 30 year opportunity and when you think about solving India's energy problems I am a believer that in the next decade India will not import 80% of its energy. We have a path and god willing like with technological breakthroughs we will be reasonably self-sufficient in energy investments in such like energy sectors which make us self-sufficient are 20 30 year time horizons investments in physical infrastructure that we still need we need like we have the opportunity to build with today's technology the physical infrastructure for 1.4 four billion people. We've just we've done a lot but there's a lot more to do. These are also 20 30 year opportunities. Technological infrastructure we are not going to be behind the world in terms of building country scale intelligence infrastructure so that every village has intelligence uh available to them and this also is a 20 30 year opportunity. Each one of this is hundreds of billions of dollars of investment and within that while the benefits are there right there are long-term sustainable compoundable opportunities and that requires sustainable capital which comes both from within and outside and to my mind India is attracting we ourselves our own experience in most of our industries is that it is not capital which is a problem. It is opportunities and execution right and the ability to give an overall transparent framework to both the consumers and the investors which is the opportunity. It's not going to be limited by patient capital. uh the world recognizes that India because the world also doesn't have many such scale opportunities where they can deploy on a few projects hundreds of billions of dollars.
>> Absolutely. Uh the market of course in India uh presents a very compelling opportunity across different sectors as you spoke of. But Larry Fink, let's talk about AI and the power, the potential of AI and uh you're a big believer in the AI story, not just for BlackRock, but in general, you know, the stock market volatility notwithstanding the fact that we're spending hundreds of billions of dollars in this AI infrastructure buildout and this is sort of front-loaded spending and there's a question mark still on the revenues and the returns. How do you sum up what is happening in the world of AI today? What do you look for? What do you look at? [clears throat]
>> I would first and and state that I don't believe there's an AI bubble.
>> You don't believe that?
>> Not at all. I believe the greatest risk we have is if we don't invest and continue to invest, China will win. And I believe the need to rapidly expand the AI opportunities is necessary. That doesn't mean we're not going to have some bankruptcies. We'll have some failures. That's capitalism. You're going to have some big successes and big failures. But the opportunity that companies have in utilizing AI um is going to be present in everything we do. I mean, even yesterday, you had Anthropic announce a a a new model which is going to be threatening for some businesses, but it's going to be an opportunity for other businesses. Um you mentioned Davos that was and you mentioned the word word cloud. There's no question AI is among the most topical conversations we're having now because it is disruptive. It's going to be disruptive for some industries, but it's going to also be very advancing. I mean, the future of AI in terms of drug discovery, in terms of humanity is is real. the use of AI for the development of new sources of power or cheaper sources of power. What can that mean in the long run for the global south? Could we have abundance in energy one day? Now, now that's still pretty far-fetched at this moment, but the opportunities of the acceleration of science is there. Uh Rob Goldstein talked about, you know, having the ability to use AI to to uh learn everything about one subject in minutes now. And so AI is going to allow more discovery, more opportunities. And with that technology, like so many other technologies, it's going to be disruptive for some businesses in some economies. And the key for AI to be really successful in every society, we need to make sure that AI broadens economic success and it doesn't narrow economic success. We talked about that a lot in in Davos the last two weeks. And that's going to be the real issue. Can AI be not only disruptive, but can it be expanding and broadening economic success throughout all economies? And that's going to be the big question about, you know, how do how do we play that out? Um, in the in the early part of AI, you're going to see countries that are huge winners and some countries that are going to be left behind. And so, you have all this dynamism around how AI is going to be playing out. That that is in the short run. In the long run, I think it's going to be it's going to be more democratizing, but in the first few parts of AI, it's going to be more limiting. Um and so we look at AI as a huge opportunity uh for us in navigating our the 14 trillion dollars that we manage on behalf of our clients. We have to use advanced technologies to process uh the business that we are already doing. Um and and and this and the same thing for all the other major companies through AI. You have better understanding your clients, better understanding of your inventory controls. You have so many advantages by the application of AI and technology and that is in the long run to be very powerful in so many of the developed economies. We have we have excessive deficits. It's a conversation that was not talked about in Davos about the excessive deficits which is a substantial problem for many of the developed economies including the United States. Can AI increase productivity? And if so, can we create can we increase GDP with a diminishing population? That's going to be the question that Korea is going to be asking and Japan's going to be asking and Italy. Can you have a growing economy? Can you have a broadening of economic success with fewer people with the utilization of AI and robotics? I believe the answer is going to be profoundly yes but it also means countries that have very rapid growing populations that's going to be a bigger question and I think India is at the nexus of it large-based population but the one thing that I've noticed India is more accepting of technologies in many of the developed countries India is more accepting of related to change than most developed economies and So because of the large-scale population, AI is going to have is going to create jobs and disrupt jobs. But for those economies that are willing to accept change and rapidly deploy that change in a positive way and I think about India the way it rapidly transformed its its economy with the digitization of the rupee. I mean to me that was a wonder to watch. And so to me AI is going to be a powerful growth engine in the world but we need to make sure it's a growth engine for more.
>> You're absolutely right and you know to your point about India surprising on the digitization front. This was a surprising fact for me as well. The Binance CEO and Davos telling me that India is the number one adopter of blockchain technology and that's something that I I was not aware of. But Mr. Ambani, since we're talking about AI and we're talking about technology to Larry Fink's point how do we leverage all of this to create shared wealth creation?
>> Well, I think that I uh I'm a believer have been a believer that we have to embrace technology we cannot uh run away from it and AI is real right from an India point of view it is hugely advantageous uh if We think about 200 million children in our schools. And if we now think about connectivity to all our schools and we give ourselves a goal that in one decade, right, with a fraction of the total GDP that others spend on education, we can deliver to each of this 200 million kids including in the remotest village quality education. Right? I think without AI this problem we could not have dreamt about solving it and we will like uh we are also participating in this opportunity this is a solvable problem you take healthcare and saying India is a large economy 1.4 4 billion people but without any social security without any organized uh health safety net right as yet relative to all the other countries can we deliver everybody like the large economies spend 8 10 12% of their GDP on delivering health care to their citizens large amount of it is wasted in terms of what and everybody recognizes This can we in India take care of all our 1.4 billion people with a digital physical health system at a fraction of global costs answer is cannot do it without AI security right again critical for uh our safety for all our 1.4 4 billion people if you use AI right and complement it with your law enforcement policies possible to do simple uh taxation right we can now have the ability to have for each citizen each company the transactional transparency so your tax paying becomes as simple as when you stay in a hotel and you have an electronic system you can see all your transactions both ways and there are no disputes and it becomes a much predictable enforcable society can it so that's AI and we shouldn't get scared of AI it's exactly like when the industrial revolution came right humanity moved forward we moved productivity moved forward we moved from.3% growth for many many decades or many centuries to 3% growth overall. Right? And at that time if you go back 200 years and if you ask people that can people travel 2,000 kilometers a day, right? Say not not possible. Today all of us not two with flying we can travel 30,000 kilometers a day and I think we just at the beginning of that age we must embrace it. India has the opportunity and what we see as you said is we see that young Indians as Kamath Sir said old Indians right India just adapts to technology faster than everybody we've seen it firsthand over the last 5 years in terms of what we want and we should use that at our competitive advantage embrace this get the productivity advantage get the earnings advantage build a better society in terms of and use tomorrow's technology before anybody else so that we catch up from our $4,000 or few,000 per capita to double digit per capita and then get to the US is still at $40 $50,000 a capita. So we've got a long way to go. this is a part to catch up and I think the world will allow us to catch up with them in the next two decades and that's an opportunity like from my point of view at Reliance we are taking this opportunity with both hands in terms of that it's uh once in uh tens of centuries opportunity and uh we can like if we embrace technology if we allow our youth to embrace that right then in the next 20 30 years we can redefine India and find our true position in the world.
>> A multigenerational opportunity as you put it Mr. Ambani but Mr. I think uh you know let me address the issue that you brought up and said it didn't get enough attention in Davos and that was deficit but what did get a lot of attention in Davos was of course the interest rate trajectory that the world is going to be faced with and and uh you know how you see some of these factors impacting markets globally the investment sentiment globally as well uh where do you see interest rates headed do you believe that we're likely to see more cuts coming in and what will be some of the other crucial risks that investors need to watch ful. [clears throat]
>> Well, well, all those questions are for the short term. So, let me answer some short-term questions. Um, [clears throat] look at the markets, the markets are honest. I mean, [clears throat] any single day the markets may miscalculate something, but overtime markets are are the are is a great mirror of what's really going on. So whether there's political pressure one way or the other, sure that can shape a market over any one day or week, but markets actually are bigger than any any individual or any economy. And so if if the mark if there's if the Federal Reserve eases too early and we [clears throat] we see inflation or we see measures that prove it wrong, you're going to have a steepening of the yield curve. So all those issues to me are not that important to be honest. I know they're important for day [clears throat] traders. They're important for media because they could talk about all the churn and all that. But they it really doesn't matter that much and I don't really spend that much time focusing on those type of issues. Now any over a course of any one quarter, any one year, yeah, sure they matter, but over time the markets correct itself and rebalance itself. And that's that's pretty much the message that we have to constantly talk about because the message is not about the moment. And everybody gets so confused about the politics, the polarization of opinions, [clears throat] you know, the politization of everything. And yet over time, that's the beauty of markets. They there the markets are an honest reflection of global economies over the long run. And that's and if you believe in humanity, [clears throat] if you believe that we correct our problems over time, I actually believe the things you read in the newspaper, all the all the stuff we read that's frightening, I get actually excited because we're talking about those issues and generally we mitigate most of the things that are on the front pages. We actually mitigate. So I actually en pleased when I see all the things all these terrible things and I'm not trying to say each and one of those things may be really terrible but the fact that we're talking about it it mitigates we self-correct are the the things that you don't read in the newspaper that you think are a problem. Those are the things that bother me like the long-term issues of of deficits that we don't spend enough time talking about. How do we mitigate it? The best way we mitigate it is through growth. That's what I try to tell every political leader. How do you grow your economy? Because you grow your economy, the deficits will be smaller as a percent of GDP. But um and so I you know I don't get I don't want I don't get bothered by most of the stuff I read because it's a good thing. That's the power of the press to identify all the issues. But through that identification of the issues, we mitigate those issues. You know, you think about all the problems you read and all the wars and all the all the all the skirmishes, but in most cases over time they resolve themselves. You think about how problematic everything is when we when we entered this year and yet over, you know, when you think about the beginning of 2025, everybody was so nervous about everything. Yet markets did great over 2025. we have some for form of resolution in Gaza and Israel. There are so many other areas in the world where we actually have diminished risks. But if you ask the average person who reads a paper, they would think things are actually worse than they are. And and and to me, obviously, negative news sells far better than positive stories. And so what I'm trying to say and my message to everybody is yes, please be a global reader of what's going on, but don't get so alarmed by it because we're going to mitigate most of those problems because that's what we do as human beings. Um, and that is the whole message about long-term optimism. You know, long-term optimists generally win. uh at the you know you know Elon Musk said in Davos it's better to be an optimist and being wrong than being a pessimist who's right and I think about just Elon himself for a second I've never met a person who is as smart as he is but with the imagination that he has and the guts to do what he's has done and I think in building that out and I would just liken that to Mukesh Ambani the ambition the imagination Um and those those are the key things in in growth and opportunity. And I to me this is what we all want to be a part of. We want to invest with a people who have ambition who have u the guts to do things that that break the mold that break that that changes society but it but be they change society because of imagination and guts. And to me, that's that's the beauty of [snorts] being a long-term investor.
>> Absolutely. So, uh, being an optimist and getting it wrong versus a pessimist and getting it right in Elon Musk's words is more important and you agree with him. But, Mr. Ambani, uh, you know, you were talking about the startup ecosystem and I want to understand from you, you know, both of you spoke about changing the mindset from savings to investing and both of you are focused on generating growth. What is the message to the young Indian saver today? What would both of you tell the young Indian saver? And let me start by asking you Mr. Ambani.
Well, Shireen, I think that uh to my mind the India opportunity, right? Is is genuinely a new era. It's now we can see it visibly over the next it's next two or three decades in terms of uh and all of us agree that growth and we take growth for granted but let me tell you all over the world people would die for 10% year-on-year growth right and we are growing on a large base and we will sustain that so for any young Indian right this growth is going to be converted to growth into his or her income, right? And so you would have income growth. We've got to continue our savings mindset. We we still want to be conservative. We don't want to inherit too many deficit problems. We are still okay. So as long as we save and if we make that mental mindset in terms of saying we will go and invest our savings to grow with India back [clears throat] into productive uses to have these productive uses go BlackRock and the whole financial community today to my mind like the while we all talked about one minute I still think that from my perception right uh access to investments and productive compoundable investments is complex it's not affordable and it's not available to all and uh that is what every young Indian should demand for and it's our job in industry to do exactly what we did with Jio that it should be available to all and then people will benefit from the power of compounding. I think that we talked about compounding but uh money in a bank account lying in a in simple interest is not compounding. Right? Money in stock market is compounding and uh India has an efficient market. We have now regulated it well and if we can channelize this money to grow for every Indian along with [clears throat] them >> right that is the opportunity that we have where hundreds of millions of Indians right become owners of wealth and don't only observe wealth creation and I think that uh India is well equipped I the institutional mechanism as well as the corporate mechanism is aligned with that very fact that we are here utilizing all the technologies to enable this for Indians is there and within this framework right there are still many many unsolved problems and even after three decades there will be many unsolved problems so the opportunity for startups think in a big macro piece right it's 110 110 trillion world 4 and a.5 trillion India right 4 and a half the $110 trillion world with AI productivity will go up to a $300 trillion world in three decades right India has the opportunity to take its share so there is like 35 trillion we have 30 trillion of new value right that has to be created and that means there is 30 trillion of new market value and that is what people will participate in in the next three decades and that's why even 100 alliances might not be enough but that's the opportunity for young Indians starting today.
>> Larry Fink, uh your your message to young Indians in the context of what you've seen happen in the other countries that you operate in [clears throat]
>> Mostly believe in your own country believe in the opportunity of growth I mean think about it if India can't grow 10% a year and let's assume the the stock market only grows grows at 10% a year. It generally it grows at a multiple of the growth of a GDP. But let's just assume it, you know, that means you're you're you're doubling your your your your your pool of money every six and a half years. Okay. Um that's a pretty good outcome. Um that's much better than keeping your money in a bank account. And um and to me, that's the foundational issue. Grow with your country. And if you believe that the that there's leverage in the in the in the system, which there is, you're going to if the economy grows at 10%, the equity markets are going to grow, you know, a mo, you know, five, six points above that uh over time. And so to me, that is the f that's the foundational to build financial security, dignity when you're in retirement. And to me that is a whole foundational issue where for a successful economy.
>> You know, you spend a lot of your time fishing, Larry, I I believe and uh, you know, I I believe this deal got done on in a car uh and it was less >> you weren't fishing. No >> no you were not you were NOT FISHING BUT WHAT was the bait? >> Friendship, friendship. That is the perfect note to end this conversation. Larry Fink, Mukesh Ambani, thank you so very much for joining us and giving us a long-term perspective of the strength of the India story and the strength of this partnership. Appreciate your time. Ladies and gentlemen, a big round of applause for Larry Fink and Mukesh. [applause]
>> Thank you. Brilliant as usual. Thank you.
>> Thank you, Larry. Heat. Heat.
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