Supported by a robust pipeline of infrastructure projects, government policies such as production-linked incentive schemes and strong FDI flows, India appears to be well-placed to ride through an uncertain global economic environment, according to Kumar Mangalam Birla. 

Many industries are witnessing fresh project investment announcements and the burden of banking sector NPAs has also eased,  the Chairman said at the annual general meeting of Aditya Birla Capital.

“Start-ups and technology-based new age enterprises have acquired critical mass in India. These sectors are exhibiting a strong momentum – providing new jobs and enhancing customer experiences,” he said.

New opportunities

Dynamism in India’s digital ecosystem, diversification of global supply chains away from China and a greater emphasis of investors on sustainable finance has also offered new opportunities for India, he added.

The global economy has seen a slew of disruptions since 2020 in the form of the Covid-19 pandemic, supply chain constraints, the Russia-Ukraine war and global stagflation, Birla said, adding that “disruption now feels like business as usual”.  

“As these tectonic shifts get normalised, businesses with deep reserves of resilience and agility are the ones that are emerging even stronger,” he said.

Birla highlighted that the major concerns around the current global crisis are the tightness in energy markets, the fallout on energy security of some regions, and the resultant chain reaction from elevated energy prices which in turn are fueling inflationary impulses and volatility.

Global supply chain disruptions triggered by the pandemic-induced lockdowns in China and the war in Ukraine have dented consumer confidence and dampened risk sentiment in financial markets, he said.

Bright spots

While the Indian economy has not remained unscathed by global developments, there are several bright spots in India’s economy which should support it to stay steady through the broader global economic turmoil, he said.

These bright spots include the strong economic recovery cycle, better inflation levels compared with many other countries, a normal monsoon, and steady external economic indicators.

“Thus, while businesses will need to remain on guard regarding financial market volatility and cost pressures this year, one expects the economy to show medium-to-long term growth recovery,” Birla said.

Focus areas

Going forward, Aditya Birla Capital will focus on customer acquisition at scale--both organically and through partnerships, data and analytics, customer service, customer wallet share, and a culture of entrepreneurship, he said.

The company has also developed several digital assets to provide a seamless and differentiated experience for its customers, he added.

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