Global financial biggies set hopes in India amid a sea of despair

Global financial biggies set hopes in India amid a sea of despair

Foreign banks and rating agencies are increasingly becoming optimistic about India’s potential to grow and as a key investment destination, while the global economy keeps fretting about intense pains caused by the biggest economies be it as front-loading of Federal Reserve rate hikes or China’s deteriorating construction bubble.

Moody’s yesterday proclaimed a stable outlook on India, saying its credit profile shows key strengths, including its huge and diversified economy with high growth potential, a comparatively robust external position, and a firm domestic financing base for government debt.

McKinsey & Co’s chief executive asserted it’s not India’s decade but it’s India’s century. “India is the future talent factory for the world. By 2047, India would have 20% of the world’s working population. And with supply chains being reimagined, it has massive potential for India across all aspects of manufacturing. The third is digitization. India has leapfrogged on the digital scale. All those are the raw materials to do something special for not only the Indian economy but potentially for the world,” McKinsey’s Bob Sternfels told ET.

India’s finance minister said that advancing economies like that of India are showing a high possibility to lead the global economy for the next 5-6 decades.