India’s growth trajectory continues to inspire optimism despite global risks, according to experts at the World Economic Forum (WEF) in Davos. While policymakers and corporate leaders express concerns about geopolitical risks, inflation, and rising interest rates, many acknowledge the underlying fundamentals that favor India’s growth.
Ling Hai, President of International Markets at Mastercard, emphasized India’s strong fundamentals, including demographics, easing inflation, spending power, export potential, and a robust service sector. He believes that these factors, coupled with people’s confidence in the country, are driving India’s growth.
Bob Moritz, Chairperson of PwC, highlighted India’s extensive digital infrastructure, particularly in areas like banking, healthcare, and education. He believes that India’s previous preparations for the digital revolution will help it take a leap forward with artificial intelligence (AI). Moritz explained that India’s infrastructure is well-suited for AI in terms of speed and scale, solidifying confidence in the country’s potential.
The International Monetary Fund (IMF) also projects India’s growth to remain strong, supported by macroeconomic and financial stability. The IMF expects India’s gross domestic product (GDP) to expand by 6.3% in the financial year between April 2024 and March 2025.
Martin Sorrell, advertising guru and founder of S4 Capital, sees India emerging as a go-to market and an alternative to China in Asia. With geopolitical issues affecting other regions, Sorrell believes India’s importance will continue to grow. He highlighted that three of the top five countries by 2050 will be in Asia, with India ranking third.
Global companies like Ikea also recognize India’s potential as a market and plan to bring down prices for their products. Ikea’s Deputy CEO and CFO, Juvencio Maeztu, stated that the company has invested in India, achieved gender equality, and fulfilled its promise to source locally, demonstrating its commitment to the country. Maeztu expressed the company’s intention to expand further in India.
Additionally, author Chris Miller, known for his work on the Chip War, is set to discuss India’s semiconductor strategy with Union Minister Ashwini Vaishnaw at Davos. Miller believes that India should develop profitable semiconductor firms that can compete globally and invest in chips for the long term, rather than relying solely on government subsidies.
At Davos, India showcased its status as a preferred investment destination under the theme Credible India. The country’s dedicated spaces, including the India Investment Centre, aimed to facilitate networking between the government and businesses, host roundtables, and foster productive sessions.
In conclusion, despite global risks and pessimism among some policymakers and corporate leaders, India’s growth trajectory continues to inspire optimism. The country’s strong fundamentals, digital infrastructure, and potential as a market make it an attractive destination for investment and growth.
