Chidambaram: Indian Growth to Pick Up in 2014
Aug. 23 – Indian Finance Minister P. Chidambaram recently spoke out on India’s slowing GDP growth rates and the fast depreciating rupee noting that growth would pick up by the final quarter of 2013 and continue well into 2014. He also clarified fears over the introduction of capital controls, stating that India has “no intention to introduce capital controls, capital inflows will in due course correct the rupee.”
Chidambaram also added that he expects economic growth to pick up quickly, commenting that “while growth is expected to be flat in Q1, it will to pick up on the back of recently cleared projects.”
Chidambaram’s full speech can be viewed in video format here.
“Media always needs to sell newsprint, and many sell with an overly negative spin when it comes to assessing India. In fact, the fundamentals are strong in terms of social dynamics and wealth creation,” commented Chris Devonshire-Ellis, Managing Partner for Dezan Shira & Associates India. “What is happening is an evolutionary process in a free market where everyone is looking for an angle to make money. The trend is upwards however, and at our firm we are seeing a higher level of foreign investor interest in India than ever before. Certain reforms still in the pipeline – such as tax reform – have yet to materialize but when they do these will just reinforce the strong opportunities that India has to offer. Now is the time to seriously be considering the India market.”
Meanwhile, private equity firm TPG Growth remains bullish on India, with head partner William McGlashan moving from New York to Mumbai to add to his funds portfolio – which is already at about US$5.7 billion, of which half is destined for India.
His comments on India and his transition experience from the United States to India can be found here.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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