- Many at the World Economic Forum in Davos described India as a bright spot on the world stage.
- Infrastructure spending, foreign investment, the digital transition and inflation heading lower were cited as causes for optimism.
- However, some analysts argue the country is largely benefiting from weak comparisons.
With 2023′s World Economic Forum in Davos dominated by discussions of economic growth, or a lack of in most developed countries, one nation was often cited as a bright spot.
India is doing “exceedingly well,” said Bank of Japan Governor Haruhiko Kuroda in a closing panel at the event, while highlighting acute challenges facing its neighbors Sri Lanka, Bangladesh and Pakistan.
Hype around the country was partly engineered, with Indian executives, officials and investment-seekers heavily represented at the Swiss mountain resort (though Prime Minister Narendra Modi was not in attendance).
But India does shine out among the world’s biggest economies, with Europe hovering on the brink of potential recession and U.S. growth slowing.
And while the International Monetary Fund sees China outpacing global growth once more in 2023 as the country reopens, its forecast of a 4.4% rise in GDP is well below its estimate for India, of 6.1%. The Centre for Economics and Business Research thinks India could speed past Germany and Japan to become the world’s third-largest economy over the next decade, hitting $10 trillion by 2035.