Davos 2023: India has repositioned itself as the fastest growing economy, say experts at WEF

Davos 2023: Even though economists and business leaders around the world are worried about a global recession, there is a strong sense of belief that India will sail through the crisis as it is well-positioned to drive global growth in 2023. Talking on the sidelines of the World Economic Forum (WEF) summit in Davos business leaders and eminent economists said that while developed economies in Americas and Europe are struggling to cope with the slowing growth, high inflation, and cost-of-living crisis, India's growth story has been one of a kind.  

Talking to Business Today, Deepak Bagla, MD & CEO, Invest India, said that India has crossed many barriers after the Covid-19 crisis and repositioned itself as the fastest-growing economy.  

“India has topped in many surveys around the world at present. The companies based out of India have topped the surveys in terms of growth plans. This is in a way a mark India has crossed beyond Covid-19. We have repositioned ourselves as the fastest-growing economy. Everyone at WEF is talking about the leadership we have taken on the business side of things. In addition, they are also talking about how our government steered itself from the challenging times in recent times. It has successfully and effectively introduced the business reform part even during the lockdown,” Bagla told Siddharth Zarabi, Managing Editor, Business Today TV.  

Some prominent indicators for India to see robust economic growth include World Bank's latest India development update, which said India's real GDP growth is expected to be at 6.9 per cent in FY22-23 in comparison to 8.7 per cent in FY21-22. 

The World Bank also revised India’s 2022-23 GDP growth forecast earlier in December following which it will be in the upward of 6.9 per cent from the earlier estimate of 6.5 per cent, due to robust economic activities. Economists have noted that India’s large labour pool, manufacturing facilities, and government support for boosting industry and exports are looked at as viable options in the present situation of crises.  

“There is no doubt that India is being seen as the brightest spot in the world. I feel India had great opportunities in the past also. But at present, the situation is opportunity is fully baked and the resolution is also very strong. One of the global megatrends is strong demographics. And that makes India’s story very interesting. In India’s growth story, a thing that is coming out very strongly is the supply chain shift. The manufacturing side of India is now taking the centre stage,” said Rajiv Memani, Chairman, India Region and Emerging Markets Committee, EY.  

Speaking about the supply chain crisis and more countries moving to India for easing production hurdles, Memani said: “India has favourable PLI schemes, tax rates are coming down, other investment options, stability in tax policies, all these factors are very crucial for India. The world is seeing India as a huge consumer market and it is clear that then companies need to come to India for manufacturing. And once companies manufacture in India on a competitive basis, and then the ability to export also goes up. This along with the digital finance push, Aadhaar, UPI, and how this is leveraging growth is the fascinating story of India. ” 

Talking about the supply chain and its impact, Memani said the shift could be as big as Rs 4-5 trillion (lakh crore) over the next 4-5 years. 

On being asked why India has become such a favourable manufacturing hub, Julie Teigland, EMEIA Area Managing Partner, EY, said: “India has access to great natural resources, highly skilled capital, and a fantastic local market. All these factors give India a stable regime.” 

Also read: Davos 2023: Stars aligned in favour of India, says Tata Steel CEO T V Narendran

Also read: Davos 2023: Global recession most likely in 2023, say economists at World Economic Forum