Speaking with CNBC-TV18, Robert Lawrence, Professor of International Trade and Investment at Harvard Kennedy School, praised the significant improvements in India’s infrastructure, highlighting how services for poorer populations, such as water and sanitation, have enhanced welfare.
Lawrence also noted that India’s geopolitical positioning as a neutral player could be instrumental in resolving global conflicts, making it an attractive destination for companies seeking alternatives to China.
“Many businesses are now looking for a ‘China plus one’ strategy, and this puts India in an ideal position to attract new investors,” he said.
Echoing this, Neelkanth Mishra, Chief Economist at Axis Bank, remarked that India’s medium-term growth prospects are robust, with a positive outlook for the stock market. However, he noted a short-term slowdown in the economy over the last four to five months, attributing this to back-loaded fiscal expenditure and the Reserve Bank of India’s tightening of liquidity.
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He suggested that these issues are temporary, with expectations that growth will improve as fiscal spending increases and the monetary stance eases.
Mishra also acknowledged the limitations India faces in replicating China’s manufacturing investment boom due to a lack of cheap capital but highlighted the growing opportunities in the services sector. He pointed to the increasing demand for Indian workers in countries like Japan, Korea, and Europe, particularly for blue-collar jobs.
Jean-Pierre Landau, Associate Professor of Economics at Sciences Po, noted that India’s demographic dynamism offers “enormous possibilities,” particularly in sectors like technology and finance. He supported Finance Minister’s optimism that per capita income in India could double within the next few years.
While global challenges persist, the consensus among experts suggests that India’s strategic location, improving infrastructure, and growing services sector make it a key player in the global economy going forward.