In a striking development, the Tata Group, one of India's most esteemed conglomerates, has seen a significant surge in its market value over the past year. This increase has led to an extraordinary milestone where the group's total market capitalization now exceeds the Gross Domestic Product (GDP) of Pakistan. According to a report by the Economic Times, the Tata Group's market value is approximately Rs 30.3 lakh crore (USD 365 billion), which astonishingly surpasses Pakistan's GDP, estimated to be around USD 341 billion.

A key player in this remarkable growth story is Tata Consultancy Services (TCS), which stands as India's second-largest company by market value. TCS alone boasts a market capitalization of around Rs 15 lakh crore (USD 170 billion), representing nearly half of Pakistan's GDP. This comparison highlights not only the scale of Tata Group's achievements but also the economic challenges faced by Pakistan, a country currently grappling with a severe economic downturn and significant debt issues.

The Tata Group encompasses a diverse array of companies across various sectors, including Tata Motors, Titan, Trent, TCS, and Tata Power, all of which have demonstrated exceptional performance in recent times. This collective success has significantly contributed to the conglomerate's increased market value. Remarkably, eight companies within the Tata Group, such as TRF, Trent, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering, have seen their wealth double in just the past year. Out of the 25 Tata companies listed on the stock exchange, all but Tata Chemicals have experienced an increase in their market value.

The Tata Group, renowned for its significant achievements, encompasses a wide array of both listed and unlisted companies. Among its unlisted entities are Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and its airline ventures, including Air India and Vistara. Incorporating the market value of these subsidiaries could potentially increase the conglomerate's overall market value by an estimated USD 160-170 billion. This projection highlights the depth and breadth of the Tata Group's portfolio, revealing a wealth of assets that extend far beyond its publicly traded companies.

Significant contributions to the Tata Group's recent surge in market value have come from standout performances by Tata Motors and Trent, along with positive movements in Titan, TCS, and Tata Power over the last year. The group's ability to generate multi-bagger returns is evident in at least eight of its companies, including the newly listed Tata Technologies. Alongside TRF, Trent, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering, these entities have successfully doubled their wealth in the past year, illustrating the robust growth and investment potential within the Tata Group.

Despite the widespread success, Tata Chemicals has experienced a slight downturn, with a 5 percent decrease in its market value over the last year, as reported by ACE Equity. This stands in contrast to the overall trend of growth across the Tata Group, showcasing the challenges and variability that can occur within such a diverse conglomerate. Nonetheless, the overarching narrative remains one of significant expansion and strength, underscoring the Tata Group's capacity for innovation and value creation across its extensive portfolio of companies.

The Unlisted Chunk Of Tata Companies

Exploring the depths of the Tata Group's financial ecosystem reveals a substantial portion of its value tied up in unlisted entities. Among these are powerhouse firms like Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and its aviation ventures, Air India and Vistara. The collective estimated market value of these unlisted components could potentially boost the Tata Group's financial might by an additional $160-170 billion. This significant figure highlights the conglomerate's hidden assets, which, when considered, paint a picture of an even more formidable Tata Group.

In a strategic move poised to further cement its financial dominance, the Tata Group has announced plans to list Tata Capital Financial Services, a key player within its financial services sector, by the year 2025. Currently valued at Rs 2.7 lakh crore in the unlisted market, this initiative is in compliance with the Reserve Bank of India’s (RBI) guidelines, which advocate for the listing of upper-layer non-banking financial companies (NBFCs). In September 2023, both Tata Capital Financial Services and its parent company, Tata Sons Private Limited, were classified as NBFC “upper layer” entities by the RBI. This classification imposes a more rigorous regulatory framework on them and mandates their listing within a three-year timeframe, underscoring the group's adherence to financial regulations and its commitment to transparency.

Moreover, Tata Play, another titan in the Tata constellation, has received approval from the Securities and Exchange Board of India (Sebi) for an Initial Public Offering (IPO). However, the precise timeline for this IPO remains under wraps. The decision to take Tata Play public is a testament to the group's dynamic approach to capitalizing on its diverse portfolio, ensuring each entity's growth potential is maximized. Through these strategic listings, the Tata Group not only aims to unlock additional value but also to fortify its standing in the global market, further enhancing its reputation as a conglomerate that is both vast in its operations and meticulous in its adherence to regulatory standards.

India's economic landscape presents a stark contrast to that of its neighbor, Pakistan. With a Gross Domestic Product (GDP) of approximately USD 3.7 trillion, India's economy is 11 times larger than Pakistan's, which stands at around USD 341 billion. This considerable difference highlights India's robust economic framework and its position as a global economic powerhouse. Looking forward, India is on a trajectory to overtake both Japan and Germany in terms of GDP, setting the stage to become the world's third-largest economy by Fiscal Year 2028. This anticipated growth underscores India's dynamic economic policies, technological advancements, and increasing global influence, marking a significant milestone in its economic journey.

Conversely, Pakistan's economic situation is marred by significant challenges, with the country grappling with approximately USD 125 billion in external debt and liabilities. The lack of a clear strategy to navigate out of this financial quagmire only compounds the problem. Historically, Pakistan has relied on substantial loans from the International Monetary Funds (IMF) to bolster its economy. However, in recent years, there has been a noticeable shift towards borrowing from countries like China, exacerbating its debt situation and ensnaring it in a perilous debt trap. This financial instability is further aggravated by dwindling foreign exchange reserves and soaring inflation rates, setting a concerning economic trajectory. Over the past five years, the Pakistani Rupee (PKR) has depreciated dramatically, from PKR 138 per USD to PKR 277 per USD, reflecting the country's escalating economic woes and the diminishing value of its currency on the global stage.

Apart from Terrorism and donkeys, Pakistan exporting beggars as well

As per the article in The Statesman on Tuesday, 20 February, 2024, India has been the target of terrorism exported from Pakistan. Additionally, Pakistan sent donkeys to China. Beggars are the latest strange export from Pakistan. Countries like Saudi Arabia and Iraq have now asked the Pakistani government to stop the flow of beggars since the issue has reached such dimensions.

Additionally, the majority of the pickpockets detained inside the Grand Mosque of Mecca are Pakistanis.

Beggars from Pakistan are migrating to West Asian nations in significant numbers as a result of the country’s record inflation and the impoverished Pakistanis suffering the most as a result of the rapidly rising cost of food and fuel. This worry was most recently expressed by the Standing Committee of Overseas Pakistanis.

According to Zeeshan Khanzada, secretary of Overseas Pakistanis, 90% of the beggars imprisoned in West Asian countries are from Pakistan and are being held in prisons in Saudi Arabia and Iraq.

Khanzada was quoted by Pakistan’s Geo News Urdu as saying, “Ambassadors of Iraq and Saudi Arabia have told us that Pakistani beggars travel abroad under the guise of ziarat (pilgrimage) on Umrah visas and later engage in street begging.”

The News International said that he also claimed that most of the pickpockets detained within the Grand Mosque of Mecca are citizens of Pakistan.

Zeeshan Khanzada briefed the Standing Committee during a hearing presided over by Senator Manzoor Kakar that there are close to 10 million Pakistani people living overseas, many of whom engage in beggaring.

He claimed that after obtaining visas, these people turn to begging abroad, noting that flights from Pakistan to the Middle East are frequently entirely occupied by beggars.

According to Pakistan’s The Express Tribune, the committee was informed that there were 200,000 Pakistanis living in Qatar and 1,600,000 in the UAE.

He added that ambassadors from Saudi Arabia and Iraq have asserted that Pakistani beggars are overcrowding their prisons, bringing embarrassment to Pakistan on the international stage.

Beggars swarming the streets of Middle Eastern countries have become a new challenge for Pakistan, which is already in trouble due to its economy’s decline.

According to a previous report from the World Bank, 12.5 million additional people fell into poverty in Pakistan last fiscal year, pushing the country’s poverty rate up to 39.4%.

In order to attain economic stability through a sharp budgetary adjustment of more than 7% of the economy, the international lender advised Pakistan to act quickly to tax its “sacred cows”—agriculture and real estate—and slash unnecessary spending.