India's big advantage is that two-thirds of the economy is consumer-oriented, says Fairfax boss Prem Watsa
Prem Watsa, who helms the $84 billion Toronto-based investment giant Fairfax, reiterated his commitment to India, hailing the country's economic prospects. Fairfax's investment plans for India are on track despite macroeconomic headwinds, he said.
«India has got one big advantage — two-thirds of the economy is consumer-oriented,» Fairfax Financial Holdings chairman Watsa told ET.
«Nations like China have taken a long time to get that, through infrastructure development and government spending and all of that… It might drop a little, half a percent here, or a percent there, but it brings a lot of stability to an economy.» Fairfax has invested $7 billion in India, he said. «In next five years, we are looking at doubling that.
We got a few projects already that we're working on,» Watsa said. However, for India to remain an attractive investment destination, continuity will be key, he said.
'Country on a roll'
During his recent visit to India, Watsa met Prime Minister Narendra Modi in the last week of December.
«I think it's fair to say that in India Modi is trusted — they say 70-80% comfort factor with the population in terms of the surveys that they do,» Watsa said. «Investors feel that with Modi there, we can trust that the economy will continue to do well, and that there will be business friendly policies and no taxes that are inappropriately put in and that kind of stuff.»
The country is better placed than others to counter any disruptions.
«India is on a roll… You might have some problems in the US… a slowdown… you might have problems in China, because they have a lot of debt and they have a huge real estate crisis there that they're looking to stabilise,» Watsa said.
«India doesn't have those excesses. Stock
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