A major debate has unfolded around India’s economic prospects. On the one hand, you have Prime Minister Modi declaring at the 2018 World Economic Forum that India’s economy, already the fifth largest in the world, will double, to $5 trillion, by 2025. On the other hand, you have the media pointing out the country’s shallow middle class, growing inequality and joblessness, and a trail of multinationals frustrated by the lack of China-like success in India.
3 Reasons Global Firms Should Keep Investing in India
A major debate has unfolded around India’s economic prospects. But while India remains a formidably challenging market, there are three reasons why global firms cannot overlook the country as a place to invest: (1) India has been increasing its infrastructure spending, which means significant growth potential for multinationals that have core competencies in high-tech infrastructure solutions such as jet engines, turbines, CT scanners, and satellite communications. (2) India’s emerging middle class is strong, and some global consumer companies like Amazon and Renault have found success in the country’s consumer economy. And (3) India is in a tech startup boom, due to large investments in its technology infrastructure, a young, highly educated talent pool, and the number of problems that need technology to be solved.