Global downturn may hurt India too: KPMG
NEW DELHI : India may not escape the impact of a global economic downturn particularly at a time elections are coming up, KPMG India chief executive officer (CEO) Yezdi Nagporewalla said. He also highlighted the opportunities thrown up by India’s large talent pool. “We are at a juncture where the global trends are not very positive.
And you are seeing trends indicating a different story. In India, of course, it has not impacted us yet. But there is a chance that it will impact us," Nagporewalla said in an interview.
“I don’t know the quantum or the quality of the impact. But that, along with the fact that we are getting into an election year, can be precarious for India." Many large economies are facing slowing growth amid steep interest rates and military conflict. India remains the fastest growing major economy in the world, at a time the US is tackling heavy debt, and China is wading through a real estate slowdown.
The International Monetary Fund (IMF) expects India’s gross domestic product (GDP) to grow at 6.3% in FY24. After the covid-19 pandemic originated in China’s Wuhan, many multinational companies have attempted to move their global supply chains away from China to other Asian countries. India is hoping to bank on this diversification with the government unveiling several targeted measures in the last few years to ramp up the country’s manufacturing sector.
Although some of the low-cost manufacturing is going to countries like Vietnam, India is a niche market with an edge over others, Nagporewalla said. “As India is becoming more and more integrated, a global player which we are, it is now pretty clear that India is the talent hub. It’s probably got the largest English-speaking population and the investments
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