With industry exerts the world over going gaga about India’s economic prowess in the times to come, Peter Eustace, TV Editor-Economics and Business Centre, BBC World; and Karishma Vaswani, Presenter, ‘India business Report’, and Mumbai Business Correspondent for BBC World, shared their views on India as an emerging nation and its impact on global economy, in a round table conference with media representatives in Mumbai. The conference was conducted in reference to BBC World’s India-specific programme ‘India Business Report’ that was launched in August this year.
It was brought to the fore that while matured markets like the US and the UK were experiencing an economic downturn, India was well placed and protected for high growth under situations of global economic recession. Eustace pointed that though China was aggressive in manufacturing and in trade deals, India was phenomenal in IT and service sectors.
“China has a good market in the US, especially in the consumer market. Historically speaking, Americans fear Chinese companies more than that of India, simply because they feel that China is brilliant in manufacturing at costs relatively lower than other countries, and that they can do trade deals at cheaper rates,” Eustace said.
Commenting on India’s limitations in the manufacturing segment, he added, “The lack of infrastructure, in terms of moving goods around the country and the rest of the world, was a deterrent to India’s manufacturing boom. But India today can be proud of its ability to create world-class brands around the world. Knowledge process outsourcing is gaining increasing momentum in India, which will further strengthen the already powerful service sector.”
Commenting on the banking and the retail industries, Eustace said, “There would be a lot of foreign investments in the corporate Banking sector with the emergence of middle class society in India. These middle class people have high aspirations, and are thus opening up a market for foreign investors, with most of the Western countries getting more matured in nature.”
Citing recessionary problems in the US, Eustace pointed that unlike India, the American credit system was stringent and thus it had become difficult to borrow money, which had subsequently led to an overall downfall of buying and borrowing in the economy.