Economic slowdown doesn’t dim India’s appeal in Davos


World Economic Forum in Davos on January 20, 2025.

Fabrice Coffrini | AFP | Getty Images

The report comes from this week’s CNBC Inside India newsletter, which brings you timely, insightful news and market commentary on the emerging powerhouse and the big players behind its meteoric rise. Like what you see? You can subscribe here.

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Seven years ago, in Davos, Indian Prime Minister Narendra Modi spoke of India’s ambition to become a $5 trillion economy by 2025.

“The people and youth of India are now Ready to contribute to the creative economy By 2025, he outlined $5 trillion in his speech at the 2018 World Economic Forum (WEF).

Modi added: “When innovation and entrepreneurship… help (individuals) move from job seekers to jobseekers, more than that, one can only imagine the number of avenues that will open up for one’s country.”

It’s fair to say that achieving this goal has proven difficult.

India’s economy is expected to exist According to the International Monetary Fund, $42.0 trillion this yearless than $0.73 trillion short of Modi’s target.

it is economic slowdown Questions have been raised about the country’s lofty goals. Market observers believe that India is now in the midst of a cyclical slowdown.

Interestingly, the India story and its growth potential continue to attract the attention of investors in India, Davos and beyond.

India is top five territories Consulting firm PwC surveyed CEOs around the world where they want to invest in the next 12 months. The other territories ranked among the top five out of 4,700 CEOs in the United States, United Kingdom, Germany and mainland China.

Optimism about India has spilled over into ongoing discussions in Davos.

Speaking to CNBC from the sidelines of this year’s World Economic Forum, Khaldoon Al Mubarak, Managing Director and Group CEO of Mubadala Investment Company Describing India as a “very, very interesting country (and) a very interesting market”.

Among the indicators that stand out on India’s potential is its large and young population. Mubarak said there were approximately 480 million Indians under the age of 18 – larger than the population of the United States, the total population of Europe, the Middle East and the population of South America under the age of 18.

“We have been investing in India for many years and we continue to focus on building our portfolio in India and really tapping into the wave that has started,” he said.

He added that the cycle “will, in my opinion, continue to move forward.”

Mubadala faith industryReturn of technology giant Jio Platforms.

Prosus is another investment firm looking to cash in on India’s growth potential, particularly the country’s technology sector.

“You’re seeing the impact of Indian technology… they’re saying ‘we’re ready for the next step’,” the company’s CEO Fabricio Bloisi told CNBC On the sidelines of the summit.

“Prosus is ready to invest more in India. In the last few years, we have invested $8 billion there and we will invest more,” he added.

Indian Startups Prosus has invested in food delivery company Swiggy, Edtech company Byju’s, Agritech Player Dehaat and e-commerce platform Meesho.

Big things in technology

India’s interest – particularly in its opportunities in the technology and start-up sectors – coincides with the government’s broader interest in developing the industry.

The main priority for the Indian delegation this year is to deepen its foothold in the semiconductor industry through government incentives and targets.

This includes exploring the development of its own graphics processing units (GPUs) over the next three to five years, said Ashwini Vaishnaw, Minister of Railways, Information Technology and Information and Broadcasting told CNBC-TV18 on the sidelines of the WEF meeting.

Other projects he revealed include India’s plan to develop 25 indigenous chipsets Designed and manufactured in the country. It expects to launch its first chip in September and its first chip by 2026.

Vaishnaw also outlined the government’s target of providing 1,000 GPUs for basic computing rights, especially to benefit startups who lack access.

He added that this is part of the government’s focus this year to develop talent and use data to create powerful datasets to train AI models.

Vaishnaw leads India’s largest delegation this year, with representatives from eight states: Andhra Pradesh, Telangana, Karnataka, Karnataka, Kerala, Tamil Nadu, Maharashtra, West Bengal and Uttar Pradesh, each have competing for investment for their upcoming initiative.

For example, Andhra Pradesh Chief Minister Chandrababu Naidu The state’s business-friendly policies reportedly Hope to attract multinational companies Unilever,,,, PepsiGoogle Cloud and AstraZeneca.

Meanwhile, its neighbor Telangana has demonstrated its expertise in electric vehicles, pharmaceuticals and semiconductors. Elsewhere, Maharashtra is reported to have India’s industrial powerhouse.

The heavy presence of Indian officials in Davos may be a recognition of the fact that companies, especially those that have only been around for a few years, need more capital than can be raised domestically.

Dhiraj Nim, FX strategist and economist at ANZ Bank, said foreign investment in the country was “drying” due to economic policy uncertainty and geopolitical risks.

He suggested that one approach for the Indian government would be to “promote greater confidence and improve the ease of doing business in India by reducing political and regulatory costs.”

“Even if global variables cannot be controlled, India can do a lot. India plans to become a developed country by 2047, so we need stronger growth than the 6-7 per cent we are used to. Growth will have to be achieved through more investment, and enhanced workforce productivity and technological capabilities can be achieved.”

The question of how India plans to continue growing at a sustainable pace while providing jobs and increasing productivity is at the forefront of the Indian government’s minds. In Davos, Indian Minister of Railways, Electronics and Information Broadcasting Mr. Ashwini Varshna sat down for a discussion with a group of global executives, investors and Indian entrepreneurs. The breakfast, organized by Brunswick Group and CNBC on the sidelines of the World Economic Forum, allowed executives and investors to raise ministerial questions and discuss India’s investment climate.

need to know

India may lower its investment investment target for FY25. The government is looking for Cut investment and asset monetization targets According to the Economic Times, a ratio of 40% (or less than 300 billion rupees ($3.47 billion)) in 2024 to 2025. It turns out , regulatory hurdles and valuation difficulties have proven obstacles, but Prime Minister Narendra Modi’s government is still selling more stakes in state-run companies than previous governments.

The Quad convened and reaffirmed their partnership. The foreign ministers of the group, which makes up the United States, Australia, India and Japan, met on Tuesday and stressed the importance of keeping a free Indo-Pacific, according to a joint statement issued after talks in Washington. U.S. Secretary of State Marco Rubio held a meeting on his first day on the job to show Anti-China is a top priority for the Trump administrationanalysts said.

Oil prices are likely to rise in India. America imposed New sanctions on Russian oil On January 10, as India imported about 40% of its oil from Russia, it may suddenly face a supply crunch, according to New Delhi-based trade intelligence firm KPLER. Supply disruption to India could be Up to 500,000 barrels per dayViktor Kurilov, senior analyst at Rystad Energy, told CNBC. To mitigate potential oil shocks, Indian importers are looking to Middle Eastern suppliers.

What’s happening in the market?

Indian stocks trade this week. this Nifty 50 The index fell 0.03% for the week, closing at 23,205.35 points.

Benchmark 10-year Indian government bond yield is 6.78%

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Kumar Rakesh, India analyst at BNP Paribas, said on CNBC television this week Optimism about Indian auto industry. Rakesh said India’s passenger car and motorcycle export rates have been growing at a fairly strong rate in recent years, especially in the African, Latin American, Middle East and Southeast Asian markets. Additionally, Indian automakers are able to enjoy greater profitability as their production costs domestically are among the lowest in the world.

Meanwhile, HSBC Global Private Banking and Wealth Management Americas CIO Jose Rasco admitted that the market in India is not cheap, but that is because investors are “payment quality“Some of the features that attract investors to India are its young and diverse economy, legal system and increasing productivity in recent years.

What happened next week?

Central bank meetings and big tech earnings will be in focus next week. Meanwhile, water management and infrastructure companies Denta Water and Infra Solutions are listed in the Indian market.

January 24: India HSBC PMI January,,,, Bank of Japan meeting, Japan inflation rate in December, UK S&P PMI in January

January 29: U.S. Federal Reserve meetingDenta Water and Infra Solutions IPOs, Meta Platform, Microsoft and Tesla Revenues

January 30: U.S. fourth-quarter gross domestic product, European Central Bank Meeting, Apple and Intel Revenue



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