India is growing fast. As illustrated by its presidency of the G20 for the coming year, it wants to assert itself on the international scene and become a fully-fledged global producer. This is a promising development for the luxury goods industry, which is already booming.
Huge. India’s population stood at 1.417 billion at the end of last year, according to World Population Review estimates, about 5 million more than China. It could tap into its economic potential, but first it will have to deal with the problems that plague the country : bureaucracy and corruption that have slowed India’s rise and glaring inequalities.
However, it intends to become a leading global producer. The government is spending nearly 20 per cent of its current fiscal year budget on capital investment, the highest level in at least a decade.
All the major powers are facing a slowdown in growth. But India’s Prime Minister Narendra Modi understands the opportunity to become a nation that can propel the global economy. Morgan Stanley predicts that India will account for one-fifth of the world’s expansion this decade. This would make it one of only three countries capable of generating annual output growth in excess of $400 billion. This projection has had an impact on global stock markets. Compared to other emerging countries, Indian stocks have never been higher with India’s Sensex index trading last quarter at the highest in a decade versus the S&P 500 (63250.6 points).
Becoming a global producer
When Prime Minister Modi launched his campaign in 2014, “Make in India”, he wanted to emulate China and East Asian countries. Which had risen to become wealthy economies by filling their factories with workers making products the world wanted to buy. But getting manufacturing to 25 per cent of GDP, a key measure in the program, has proven difficult. To overcome this problem, India, upon inheriting the G20 presidency for 2023, built an external strategy based on multiple alliances. For example, it has increased its purchases of Russian oil 33-fold, despite pressure from Washington…
Featured photo : ©Taj Mahal Palace Hotel of Mumbai