If a prophet of doom says something positive, one must sit up and take note, more so if the comment is about India.
Nouriel Roubini, a professor emeritus of Stern School of Business, New York University — who earned the nickname “Dr Doom” after famously predicting the 2008 US subprime crisis — recently said India could realise a growth rate of 7% or even higher over the medium term with the right policy interventions, and its economy would likely expand at a faster pace than China’s over the next decade.
In 2022, Roubini said the world was staring at a “long and ugly” recession that could sink the stock markets by 40%. Given this comment, what makes him so positive about India? From where does his hope for India spring?
Below are some of his views from his recent talks and interviews that form the basis of his optimistic view of India's economy:
Population
Roubini says there is a good chance that due to its sheer size, India is going to be the most important country in the world over the medium to long term. "You have a population (that is) the largest in the world, young and growing – 1.4 billion people – which can, with good education and skills, lead to strong economic growth," he says.
Pent-up growth
The professor, who is often called a “permabear”, says India has a lot of pent-up growth that can be realised. "There is going to be a catch-up of growth. The growth per capita of India is only one quarter of that of China. With the right policy, growth can be potentially above 7% and that is going to lead India to become a very strong economic power."
Read more at: https://economictimes.indiatimes.com/news/economy/indicators/why-is-dr-doom-nouriel-roubini-so-upbeat-about-indias-economy/articleshow/98185466.cms
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