Why billionaire investor Warren Buffett needs to relook at India under PM Modi

May 6, 2024
May 6, 2024IANS - New Delhi

Unaware of the possibilities India now provides for global investors and big conglomerates, Warren Buffett, Chairman and CEO of global investment major Berkshire Hathaway, needs to have a fresh look at a country which is set to become the third-largest economy in the world with a GDP of $5 trillion.

In the last 10 years, under the visionary leadership of Prime Minister Narendra Modi, the country has progressed well across all economic parameters and is now the fifth-largest nation with a GDP of around $3.7 trillion (estimate FY24).

A decade ago, the country was the 10th largest economy, with a GDP of $1.9 trillion (current market prices).

According to the Finance Ministry, "This 10-year journey is marked by several reforms, both substantive and incremental, which have significantly contributed to the country's economic progress”.

At the company’s annual meeting on Sunday, Buffett said they could explore the untapped potential in India as “there may be areas unexplored or unattended to opportunities”.

"In India, I am sure that there are loads of opportunities” and the question is “do we have any advantage, in either insight into those businesses or contacts that will make possible for some transactions that participants in India would particularly want us to participate”.

As Buffett looks for a possible entry into the country, India’s GDP growth is set to attain a new peak, sectors like manufacturing and automobiles have started looking up again, and the GST collections are gaining new highs.

According to the latest RBI data, India’s GDP growth has early signs of rising above 7 per cent -- recorded during the 2020s before the pandemic.

The latest IMF data shows that in 2004, India's per capita GDP was $635. The country's per capita GDP in 2024 has shot up to $2,850, which works out to 42 per cent of the $6,770 for its peer countries.

According to an HSBC survey released earlier this month, India's manufacturing sector continued to grow at a robust pace in April, on the back of strong demand.

Moreover, the country remains the third largest tech startup ecosystem globally, with over one lakh startups and more than 100 unicorns, despite global challenges.