fredag 20. januar 2023

India flexes its muscle at Davos as China’s star fades

The promenade at the World Economic Forum, dusted in a blanket of fresh snow, is cluttered with signs and pavilions from companies and governments courting attention or deals. There’s the tech giants, the major consulting groups, representatives from the Middle East.

But this year, dominating the main street in Davos are emissaries from India, who have taken over at least eight storefronts with appeals to the elite gathering’s political and business class. “Every 10 steps you will have either us or a state government or a private entity,” said Deepak Bagla, the CEO of national investment promotion agency Invest India. One investor, Bagla joked, had described the thoroughfare as “Little India.”

India has shown up in force for good reason. In 2023, as global recession fears persist, the country is expected to log the best performance of any major economy. The World Bank is estimating growth of 6.6%, compared to just 0.5% for the United States and 4.3% for China.

If it can maintain its momentum, India will overtake Germany as the world’s fourth largest economy in 2026, knock Japan from the number three spot in 2032 and become only the third country with GDP worth $10 trillion by 2035, according to an analysis by the Centre for Economics and Business Research.