(TheConservativeTimes.org) – India’s economic growth is continuing to soar, but policy continuity is a crucial piece to seeing continual growth for the next five years.
Rob Subbaraman, Nomura’s chief economist and head of global markets research Asia said “The Modi administration in Modi 2.0 has done a very good job.”
Subbaraman said that Nomura has projected India’s economy to rise seven percent in the next five years but that’s only if the current policies stay in place. The predictions for India are much higher than even predictions for China or South Korea.
“With China’s economy slowing, India is likely to be the fastest growing Asian economy this decade,” Nomura said.
The Bank’s analyst said, “Irrespective of the election outcome, policy continuity and a focus on macroeconomic stability are important growth underpinnings.”
One of the biggest things that’s changing for India and spiking this economic growth is foreign investments. There is a huge push for manufacturers to move into India and build facilities as there are other investment opportunities available as well for the country.
India has plans to be a global manufacturer and the investments that back this are expected to boost their economy. Although the country is seeing a jump in its investors and opportunities, Nomura said that India will still need to play catch up with other countries in Asia because their global exports are only at about two percent of their current economy.
“The manufacturing takeoff is in its early stages, in our view, and the full impact should become visible over the next 3-5 years,” said Nomura.
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