New Delhi: Renowned economist & Nobel Laureate Michael Spence is bullish on India growth story and views it as a country with high upside potential.
He believes that India has all the ingredients of becoming a global powerhouse and it’s the only economy that can grow at over 7% growth rate in the challenging times.
Michael Spence, also the Professor of Economic Emeritus at Standford University, in conversation with Economic Times said that Indian economy is the outstanding performer at this point and remains the most preferred investment destinations for now.
Talking about global policy changes, he says that the world economy is undergoing a form of ‘regime change’ and upheavals are no surprise in such a scenario. He also listed out the reasons, apparently serving as stumbling block in growth. Supply deficient economy, changes in labour market behaviour coupled with other factors are hindering the recovery.
Talking about China, he says that the Asian giant still holds promise as there is still high growth potential however, it’s Zero Covid policy and imbalances in property market have turned to be a dampener. However, it is still expected to grow anywhere between 3.5% to 5.5%.
On chances of US plunging into recession, he said that it might be hit by a mild slowdown, however much will depend on the action of Federal Reserve and Inflation numbers.
The Nobel Laureate said that India will benefit immensely from its thriving digital ecosystem. The mobile internet penetration has reached villages, data rates are among lowest in the world and there are a lot avenues to be tapped. This will lead to explosion of entrepreneurial activity. Many business houses have already started integrating their retail businesses with digital supply chains.
Spence says that the ‘digital revolution’ in the country will throw up many opportunities for employment generation and will in turn add much-needed strength to the economy.