Davos Digest: Raghuram Rajan lifts India's spirit and other stories from the World Economic Forum

• At the event, former RBI governor Raghuram Rajan has said that India will soon surpass the size of China’s economy.
  
• IMF Chief Gita Gopinath has raised the red flag for India by calling out the risk associated with India’s high fiscal deficit.
  
• While Indian political leaders may be missing, industry top honchos Ambani, Adani among others are making up for the country.

It’s that time of the year when the world’s biggest political, business and thought leaders of the world sit down and discuss global economy, investments, climate change and other pressing issues and potential opportunities at the famous skiing destination in Switzerland-- Davos.

The World Economic Forum has officially kicked off in Davos and unlike last year, where Indian prime minister Narendra Modi made a splash, most political leaders from India have pulled out of the event to focus on the upcoming general elections. However, India, an economy that is touted to be among the world’s top five in 2019, was certainly a talking point at the world’s most elite gathering.

The buzz at Davos

Indian economy can be bigger than China

Former RBI governor Raghuram Rajan has made big predictions for India at the event. Rajan said that India will soon surpass the economy of China and will lead the infrastructure development in South Asia. “India will become bigger than China eventually as China would slow down and India would continue to grow. So India will be in a better position to create the infrastructure in the region which China is promising today. But this competition is good for the region and it will benefit for sure,” he said.

IMF’s advice for India’s finance minister

IMF's Chief Economist Gita Gopinath has raised the red flag for India by calling out the risk associated with India’s high fiscal deficit. In an exclusive interview with ET now, the IMF Chief said, “It is important for India to stay the course on fiscal consolidation. If you look at the aggregate deficit for India – combining the centre and the state deficits – has not improved much in the last five years. That is something that needs to be addressed.”

However, The International Monetary Fund's (IMF) World Economic Outlook Update released by chief economist Gita Gopinath on Monday said that India's economy is expected to grow by 7.5 per cent in the 2019-20 fiscal year, keeping an upward trajectory as the rest of the world slumps.

India to lead Industry 4.0

India presents a big opportunity with the fourth industrial revolution, declared Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek. Speaking at a breakfast session titled 'Shaping India's future with Industry 4.0', organised by global consultancy giant Deloitte and industry body CII, the secretary said that India is fast adapting to new technologies and facilitating with policy framework to make way for industrial growth.

‘Chai pe charcha’ at Davos

Indian tea is making a big appearance at the event with Tata Tea’s participation at the WEF. The company is offering free cups of tea to the attendees of the event.

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Neighbours compete

At the WEF too, rival states of Telangana and Andhra Pradesh are making their call for investments. While Telangana makes an appearance again this year asking investors to make the state their first stop in the country, sister state Andhra Pradesh is calling itself ‘future-ready,’ Andhra Pradesh Chief Minister Chandrababu Naidu, too, was supposed to attend the event but he’s passed the opportunity.
What to expect

Many Indian industry top honchos like Mukesh Ambani, Gautam Adani, Nandan Nilekani, Anand Mahindra, Pawan Munjal amongst others will be making an appearance at the event. Indian commerce and industry minister Suresh Prabhu will also be attending the event. Madhya Pradesh Chief Minister Kamal Nath will be speaking on emerging markets outlook on Day 3.

See Also:
India's economy projected to grow the fastest in the 2019-20 even as the rest of the world slows down: IMF

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