Top Indian CEOs Optimistic On Economic Future

Karan Chanana, CEO of Amira Nature Foods, believes that the recent decline of the rupee is more a reflection of what is happening with the U.S. dollar as opposed to any sort of decline in the fundamentals of the Indian economy.

“India is re-calibrating. This economy can grow again at 7%. Perception is not matching the reality. Executives have got to look through the fog,” Chanana commented.

However, some analysts, such as Alexander Muromcew, Portfolio Manager of the TIAA-CREF Emerging Markets Equity Fund, remain skeptical as to whether India can continue its positive trends – especially since the 2014 election cycle will soon be beginning.

Regardless, many other analysts such as those from the Ashmore Group believe that there are many underlying factors that still make India a good bet. A big part of this belief lies in the existence of the country’s young, and increasingly urban, population.

Additionally, the economy is diversifying itself much more into overseas exports. In fact, the lower rupee has actually helped to boost exports from the country.

The new Reserve Bank of India (RBI) Governor Raghuram Rajan has also inspired hope by implementing a number of corrective measures such as putting interest rate cuts on hold in order to defend the rupee.

Data from Japan-based financial services group Nomura has shown that India received about US$36 billion in foreign equity investments in 2012 for the second straight year – the most an emerging Asian country has ever received.  The reasons for these investments range from cheap valuations to the prospect of future growth.