How do you assess the outlook for your economy?
Recent growth rates have disappointed but the cabinet reshuffle and reforms announced by the government – opening up the retail, aviation, broadcast and insurance sectors to FDI and the introduction of a new Manufacturing Policy – are collectively expected to push short-term growth back up towards 7%. The economy’s underlying fundamentals remain robust; the right domestic policies and external conditions could see growth rates return to 8-10%. However, a lot will depend on the ability of the current coalition Government to push forward with reforms.
What are the top three strengths of your economy as a potential target for investors?
India is the world’s largest democracy with a vast, partially untapped, consumer market. The population is relatively young, increasingly well-educated and English-speaking. It also has some world-class institutions and follows common law.
What should business leaders be aware of when investing in your economy?
India is a large, incredibly diverse country, so business leaders should have plan well thoroughly for each region rather than hope to muddle through with a one-size-fits-all strategy. Regulations can be complex so finding a strong, credible local partners and advisors is essential for foreign investors. And importantly, investors need to take the long-term view of success in India. It’s not the right market if you’re simply looking for a quick, short-term gain.
What sectors does your firm specialise in?
We have experts in many sectors including real estate & construction, healthcare, technology, food & beverage, media and cleantech.
Vikesh Chandiok is National Managing Partner, Grant Thornton India LLP.