India’s economy is still growing very quickly, but policy stability is very important if the country wants to keep growing over the next five years.
As the chief economist and head of global markets research for Asia at Nomura, Rob Subbaraman said, “The Modi administration in Modi 2.0 has done a very good job.”
It was said by Subbaraman that Nomura thinks India’s economy will grow by 7% over the next five years, but only if the present policies are kept in place. More people think that India will do well than think that China or South Korea will do well.
As China’s economy slows down, Nomura said, India is expected to be the fastest-growing economy in Asia this decade.
The Bank’s analyst said, “Policy continuity and a focus on macroeconomic stability are important growth underpinnings, no matter what the election outcome is.”
Foreign investments are one of the most important things that are changing India and speeding up its economic growth. There is a big push for manufacturers to move to India and build factories there. The country also has other investment options.
India wants to be a world leader in manufacturing, and the money they are putting into this will hopefully help its economy. The number of investors and business opportunities in the country is going up, but Nomura said that India will still have to catch up to other Asian countries because their exports only make up 2% of their present economy.
As Nomura put it, “the manufacturing takeoff is still in its early stages. The full effects should become clear in the next three to five years.”
