David Rubenstein, co-founder of large American private equity firm Carlyle Group, has said that India is growing rapidly and could become the world’s largest economy in the next two to three decades. He made this statement in an interview at the World Economic Forum (WEF) in Davos. “I think India could become the largest economy in the world in our lifetime. I would say maybe in 20-30 years,” Rubenstein said.
What is the current situation in India?
India is currently the fourth largest economy in the world. It is the fastest growing economy in the world. India may soon overtake Germany to become the third largest economy. Currently, America is the largest economy, followed by China at second place. India’s rapid growth will help it leave behind both America and China. He also emphasized the advantage of India’s young population, which will be very helpful in the long run.
What advice did Rubenstein give to India?
He advised Indian policy makers not to view global private credit and private equity (PE) as Western investments. Private equity means that companies invest in firms that are not yet listed on the stock market. Private credit means that companies give loans directly and not through banks. “If these markets are allowed to grow, well-capitalized Indian entrepreneurs will come to India, and many will live and work in India,” Rubenstein said. Carlyle Group has invested more than $8 billion in companies across different sectors in India.
What did he say about US-India relations?
Rubenstein said that there are no concerns about US-India relations. He said, “President Trump has generally been very positive about America’s relations with India. He has sent one of his very close aides as ambassador.”
Trump-Xi Jinping’s strong relationship
Rubenstein said that the purpose of Trump’s China policy was not to harm China, but to correct the trade imbalance. China has accumulated a surplus of more than one trillion dollars annually by selling more goods in other markets. However, for Trump, China is not as big an issue as the Russia-Ukraine dispute. He said Trump believes he has a good relationship with Xi Jinping and they will meet at least twice this year. Maybe some agreement can also be reached.