India’s path to becoming a global economic powerhouse

Rob Subbaraman, head economist at Nomura, stressed the need for India to maintain consistent fiscal and monetary policies to secure its economic growth. Such a stable policy environment, he contends, would foster investments, boost manufacturing, and stimulate job creation. Subbaraman believes that with strategic planning and optimal leverage of its vast workforce, India could emerge as a global economic powerhouse. Nomura anticipates that India’s economy will outpace its Asian counterparts by averaging a 7% growth rate from 2024 to 2028. According to Nomura, despite potential challenges such as government instability and inflationary pressures, India’s focus on innovation, talent development, and investment in the digital economy would fuel this robust growth. Subbaraman commended the Modi government’s economic initiatives, citing groundbreaking taxation and trade policy reforms, reduction of bureaucratic red tape, and improvements in digital infrastructure as factors contributing significantly to India’s economic growth. The upcoming election presents an opportunity for Prime Minister Narendra Modi to secure a third term.

India’s journey to stable economic growth

Victory could solidify his party’s majority in parliament, potentially leading to a period of political stability and continuation of growth-inducing policies. However, regardless of election outcomes, Nomura underscores that policy consistency and macroeconomic stability are critical for India’s economic progress. Any abrupt policy shifts could deter investors and destabilize the economy. Subbaraman highlighted the importance of foreign direct investment (FDI) in India’s growth story. He credits FDI for enhancing capital inflows, fostering innovation, and creating high-skill jobs. Despite economic challenges, Subbaraman remains optimistic about India’s economic trajectory. He concludes by expressing hope that current trends will be sustained, leading India to emerge as a global economic powerhouse.