In a chat with media, John Studzinski, Vice Chairman, Blackstone, says the demonetisation effort might have been clumsy but obviously necessary from the standpoint of trying to simplify how the currency is managed. Edited excerpts:
How is India perceived as an investment destination by the international community?
If you look at the international community right now, they look at India as actually one of the few emerging markets where people actually are interested in putting capital. So overall people have a positive view of the Indian economy.
As somebody who understands the Indian market and the Indian economy, 86% of the currency was outlawed. Was this warranted and what could be the repercussions? IMF has cut the global growth forecast and has cut India’s growth forecast by about one percentage point from 7.6 to 6.6%. Is that an obvious repercussion and implication of demonetisation which has of course dented consumption and growth?
First of all 6.6% is still a very big number in the context of the rest of the world today. I would actually say it is probably the highest growth rate in terms of GDP forecast of any economy in the world right now that I can think of. The demonetisation effort might have been clumsy but obviously necessary from the standpoint of trying to simplify how the currency is managed. It is also a longer term strategy towards going towards paperless currencies which all countries are pursuing.
As someone who has exposure to India in terms of investments, which are the sectors that still keep you maintain your faith in India?
The one sector we continue to look at very carefully is real estate. It is still an asset class that whether you are looking at the primary cities or even the secondary cities. There is an enormous amount of what we call buy fix and sell and buy fix and hold opportunities in India.
So real estate is clearly an opportunity.
Do you believe there is a lot of overheating still in the Indian market because earnings have not still picked up and this quarter is going to be the big litmus test whether they will or not?
As we step around the world where have earnings really picked up?
Credits ET Realty