Hinduja Group’s chairman in India declared himself to be optimistic about “the very great emerging, fast moving market” that is India.
Ashok Hinduja said in an interview with CNBC on Thursday: “We see a recession coming in the U.S., recession coming in the U.K., in Europe, troubles in China, [a] problem in Southeast Asia under the dread of China-Taiwan. In light of the general situation, our current attention is on India as a developing market.
The Hinduja Group has its headquarters in India, but it also has operations in close to 40 other countries, including the United States, the United Kingdom, and Switzerland.
Ashok Leyland, one of India’s top producers of commercial vehicles, is its principal enterprise.
Tanvir Gill of CNBC was informed by the chairman that “India, politically, is fairly established.”
He complimented Prime Minister Narendra Modi, saying, “The credit goes to our prime minister.” “He has handled ties with the United States, Europe, Russia, and China in the current scenario – though there were issues with China, he has handled them well, and they are under control.”
India and China’s relations are still tense after their military engaged in combat on a shared border in 2020. Western nations have recently chastised India for stepping up its purchases of Russian oil while that nation’s invasion of Ukraine continues.
When asked if the United States’ recession danger and rising interest rates would have any effect on India, Hinduja responded that it would have a limited effect.
He noted that while Indian shares have fared better this year, the American and European stock markets have declined.
Both the S&P 500 and the all-European Stoxx 600 have experienced declines of almost 17% this year. The Nifty 50 in India is up almost 1%.
Economic expansion slows
Hinduja asserted that the Indian government is fighting corruption and that it will invest in infrastructure before the upcoming elections, which are scheduled for May 2024.
Looking at the global scenario, India is currently [the] greatest bet, he claimed. “Infrastructure spend will be there, economic development will come in,” he remarked.
In 2022, India’s economy grew tremendously year over year, though more lately, the pace of growth seemed to have slowed.
The OECD reported last week that India’s second-quarter GDP growth was the second-worst among the G-20 group of major affluent and developing nations, on a quarter-to-quarter basis. Goldman Sachs reduced its full-year prediction for India’s GDP growth from 7.6% to 7% at the beginning of this month.
India got $17.3 billion in foreign direct investment in the first quarter, ahead of emerging peers Argentina and Indonesia but behind nations like Brazil and Mexico, according to a report from the finance ministry of India.
According to the research, China’s foreign direct investment over the same time period exceeded India’s, coming in at $101.9 billion.
According to the ministry, India received $16.1 billion less in foreign investment during the second quarter.