Barclays: India Is on the Rise

London-based 327-year-old Barclays PLC says: With a rapidly growing middle class, a young labor force, and a reform-minded government, India is on the rise.

With a GDP of nearly $2.5 trillion, —  and one of the highest GDP growth rates in the world — India ‘s GDP is outpacing emerging markets; the country now holds investment-grade borrower statusSeveral factors are combining to create a virtuous cycle that heralds sustainable growth

Anti-corruption Reforms — the ban on high value rupee notes in November 2016 was a bold anti-corruption measure. Another of its anti-corruption initiatives is the Aadhaar program where over a billion Indians have enrolled in the universal ID program – the largest biometric identification system in the world that among other benefits ensures wider financial inclusion of the country’s people.  

Indian flag

Long Term Investment — In order to attract long-term investments, the Government of India has eased limits on foreign direct investment (FDI), simplified regulations, implemented the integrated goods and services tax, and has undertaken planned urbanization. India is a top prospective host economy for FDI for 2017-2019.

Growing Labor Force — More than 10 million people join India’s productive labor force every year. The average age of India’s productive workforce is 27 – a decade younger than China’s and America’s workforce – and most people are expected to continue working until 2050. India’s population is projected to remain one the youngest for the foreseeable future.

Strong Macro Fundamentals — India has been able to circumvent high inflation, high fiscal and current account deficits, and pressure on the currency and interest rates with careful monetary and fiscal policy — its current account gap, as a proportion of GDP, has narrowed rapidly over the last four years. Real GDP growth has averaged around 7.5% Year-on-Year since 2014, up from about 6% in previous years.

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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