In the Emerging Markets track session at Doing Business Globally in Dallas this morning, Baker & McKenzie Partner Ashok Lalwani offered insights on doing business in India. Mr. Lalwani, who is based in Singapore, described a growing optimism among foreign investors in India, following the election of Prime Minister Narendra Modi in May.
- With the landslide election of Modi, there’s a new buzz in India in terms of business expectations. GDP growth predictions are at 6-7 percent, the value of currency has remained stable, and the stock market is at record highs — all considered positive economic indicators.
- In the next couple years, business momentum is expected to build, with a number of industries being liberalized, and more foreign direct investment permitted.
- In the long-term, the M&A outlook in India is strong. It is a solid domestic market with an educated workforce and competitive labor force.
- On the short term, meanwhile, domestic M&A is expected to take off.