Modi brainstorms with billionaires as China worries deepen

Prime Minister Narendra Modi called bankers and billionaires to his residence on Tuesday to brainstorm on how India can manage global economic turbulence, including opportunities for Asia’s third-largest economy in China’s market and growth woes.

The morning meeting in New Delhi was attended by tycoons including India’s richest man, Mukesh Ambani, Finance Minister Arun Jaitley, central bank governor Raghuram Rajan, economists and state and private bank chiefs.

At the gathering, industry chamber Assocham told Modi that policymakers needed to act fast to "bullet proof" India from global jitters – calling for a deep cut in interest rates and new duties to stop dumping of Chinese products such as steel.

India’s economic situation has improved considerably since the "taper tantrum" of 2013, not least thanks to lower prices for the commodities it imports. Then, inflation, for example, was at double digits – it has since halved.

The International Monetary Fund considers India’s economy a rare bright spot among emerging markets and Modi sees a chance to attract more foreign investment as money flows out of China.

But it will not be easy to turn China’s pain into India’s gain. Investors and corporates increasingly worry that Modi has not moved fast enough since taking office. Annual growth slowed to 7 per cent in the June quarter.