Bankers look to India as Russia and China growth prospects dim amid Ukraine war, Covid-19

Bankers have cited India’s stable political environment, strong growth prospects amid global uncertainty

India saw its highest annual foreign direct investment inflow of US$83 billion last year, and is reviving trade pacts to expand its global push

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Bankers and investors are turning to India as Russia and China lose their lustre - at least in the medium term. Photo: AFP

Published: 11:00am, 9 Oct 2022

From JP Morgan to Deutsche Bank, the world’s biggest financial firms have booked heavy losses this year following Russia’s Ukraine invasion, while more risks abound amid tensions on the Taiwan Strait.

But as Russia and China lose their lustre – at least in the medium term – bankers have looked to India as a bright spark.

In an interview with The Economic Times on Tuesday, Deutsche Bank CEO Christian Sewing called India “the powerhouse in Asia”, saying that the country was set to outshine most competing economies during a period of global uncertainty.

HSBC chief Noel Quinn meanwhile said last month that with strong growth prospects and a stable political environment, India was “extremely well-positioned to ride out an economic slowdown”.

Also in September, Citigroup executive Manolo Falco told Bloomberg that the New York-based lender was targeting India as one of its top markets to expand in on a global scale.

“India looks very steady and it has a government that seems to know exactly what they have to do,” said Falco, the bank’s global co-head of banking, capital markets and advisory.

Increasing tensions between Beijing and Washington over Taiwan might be leading major Wall Street banks to reassess the risks of focusing on China, but that may not be the sole reason.