• Home
• /
• Local business
• /
• Business

Why India's growth story will carry on

Dubai - Amount of investments from the UAE and the rest of the GCC that go to India every year are very substantial

The great Indian economic growth story is here to stay, said Vipul, Consul-General of India in Dubai.
Speaking at the 'InvestSmart - India Investment Summit' late on Thursday, he urged businesses to invest back home in India.
"We all know that we can get a guaranteed good return on investment in India today," he said in his opening speech.
"India is a great market and country to invest in, and it will remain one of the biggest and fastest growing economies in the world in the coming years."
He also revealed that the amount of investments from the UAE and the rest of the GCC that go to India every year are very substantial.
"Over 70 per cent of Indian workers here in the UAE save small amounts and send the rest of their salaries home. Many of them face great challenges but are determined to provide for their families. It is incumbent upon all of us to develop targeted instruments that can help them in this endeavour. This not only makes good social sense, but also good business sense."
He added that foreign direct investment (FDI) into India has been growing at a rate of 40 per cent over the past two years.
"The world sees the merit in investing in India. Almost all the large conglomerates are investing in India, due to the ease of doing business, and this is thanks to the efforts of the government. The government is also responsible for facilitating investments in various sectors, including the energy sector. In terms of the relationship between the UAE and India, in the last four years, our relationship with the UAE has grown exponentially. The UAE has emerged as one of the best trade partners for us in the world. We can look forward to a lot more from this relationship in the future."
Naveen Sharma, chairman of the Institute of Chartered Accountants of India - Dubai Chapter, noted that India is becoming the startup capital of the world.
"If we compare with China, or any other big economy, India's population is young. When you have a young population, you have dreams, ideas, and innovation. Furthermore, the Indian economy expanded 7.2 per cent year on year in 2017, and at one point of time in 2011 India grew at a rate of 11.4 per cent. From 1951 to 2017, the Indian economy grew at the rate of 6.13 per cent."
He added: "Sometimes, we take things for granted. However, there is no example other than India and China in the human history, where such a large economy in the world grew at more than five per cent for a period of 50 years."
"If the economy will grow at the rate of seven per cent, the corporate sector will grow at the rate between 10-15 per cent minimum and when there is a growth of 10-15 per cent, good companies will grow more even at the rate of 20 per cent and above."
"We have all seen the Indian Stock Market going up and down. However, the kind of money that is made in the Indian stock market in the last 20-30 years is phenomenal," he said.
Sharma concluded by saying that for non-resident Indians, there are very limited options in other major economies of the world, and the natural choice is to invest in India. "Invest today, and invest on a regular basis," he said. "Only systematic and regular investments will give us disposable income."
- rohma@khaleejtimes.com