India, good enough already

India, good enough already

India’s share of world GDP has more than tripled since 1992.

As the end of China’s economic exceptionalism has become clearer, the search for alternatives has accelerated.

The COVID-19 era shifted global working patterns in ways India is uniquely placed to capture.

The COVID period also saw India move on its physical infrastructure, to narrow the gap with what the IMF labelled “world-class public digital infrastructure”.

Last week’s Union Government budget doubled down on the capex agenda.

No doubt India has an unenviable to-do list. But wouldn’t we expect an economy with a GDP per capita of USD2,500, ranking 185th in the world, to have plenty to do? The to-dos are what give the upside.

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Bhavik Anand

Vice President- FX Product specialist- south , North & west - Institutional banking Group - CITI BANK NA EX - SCB

2 年

Agree still early days but it’s a good start nevertheless , the policymakers have scaled up on reforms & doubled down on digital and hard infrastructure which augurs well for the country & as I say we have made some headway but haven’t still scratched the surface - While india is the fifth largest Economy but our per capita GDP is still dismal $ 2500 which needs to be shored up materially to reduce inequality! The China+ 1 strategy which has been adopted by lot of global corporates where supply chains have started to reposition themselves will benifit countties like Vietnam and India but these countries need to enhance ease of doing business - a lot has been done on this metric for instance outdated laws have been obliterated ,some of the legal provisions have been decriminalised & regulatory cholesterol / excessive regulatory oversight has been watered down!! Focus on domestic manufacturing through PLI reforms bodes well , govt doubling down on Capex will trigger a virtuous cycle of growth - this has a higher multiplier hence we would see this would lead to more jobs , boost consumption, elevate output , boost exports , reduce import dependence , significantly reduce logistics cost & enhance per capita GDP !

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Ritesh Kapur

Helping Companies increase Profitability through Inventory Optimization

2 年

- India is the 5th largest economy in the world. - India's share of the world's money has gone up 3 times since 1992! - India's economy grew faster than China's in 2021 and 2022 and is expected to keep growing. - More money is leaving China than India, but people are still investing a lot in India. - India is becoming a better place for businesses, like a report from the World Bank says. - The COVID-19 pandemic didn't hurt India much, but it made things worse in China. - India made trade deals with the UAE, Australia, and might make one with the UK soon. - The Indian government is spending a lot of money on infrastructure, more than ever before. - India has a long list of things to do because it's not as rich as some other countries. If you want to start a lemonade stand, you need to buy the lemons, sugar, cups, and a table. That's the risk. But if you sell a lot of lemonade, you'll make money and be able to buy more lemonade ingredients, a bigger table, and maybe even hire a friend to help. That's the reward! Just like India, there's a risk, but also a reward. Thanks Richard!

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