India Poised To Drive Global Economic Growth: Kotak Mahindra AMC’s Nilesh Shah

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company (AMC), said that India powers 8–10 per cent of global economic growth and will lead the world economy in the coming years.

Speaking at the Kotak International India Insight Summit at The Metropolitan Club, New York, Shah emphasised that India’s sustained performance makes it the best-performing emerging market globally.

“India, at 3.5 per cent of global GDP, may seem small today. Yet, incrementally, it drives 8–10 per cent of world growth, and on purchasing power parity (PPP) terms, our share of expansion is nearly 18 per cent. India is the engine of the global growth train,” Shah remarked.

Highlighting India’s rapid economic rise, Shah noted that the country now ranks as the world’s fourth-largest economy, with a nominal GDP surpassing $4 trillion this year.

This marks a remarkable leap of six positions in just a decade — from 10th to 4th place.

He acknowledged that India’s per capita GDP of $2,940 places it 136th globally, reflecting the long journey still ahead.

Yet, he underlined that the country’s structural reforms and digital transformation have laid a strong foundation for inclusive and sustainable growth.

Between 2020 and 2025, India’s equity markets have grown at an impressive annual rate of 13.7 per cent, outpacing all other emerging markets.

Shah credited this to robust domestic demand, policy consistency, and increasing institutional investment.

Fiscal Prudence and Global Standing

On fiscal management, Shah praised India’s ability to maintain discipline even during global crises.

He observed that while the country’s consolidated deficit (centre and states combined) remained above 7 per cent of GDP last year, India is the only major economy to have reduced its debt-to-GDP ratio between the 2008 subprime crisis and the post-COVID period in 2025.

This fiscal prudence, he said, has strengthened global investor confidence and positioned India as a resilient and stable economy.

Shah also highlighted India’s openness to foreign participation in key sectors.

He noted that global investors already hold majority stakes in India’s largest listed bank, asset management company, automobile company, FMCG firm, telecom company, and engineering firm, even as the world urges India to liberalise further.

He pointed out that while China restricts major global digital platforms, India freely allows companies such as Meta, X, Google, Yahoo, WhatsApp, and Amazon to operate, underlining the country’s liberal market environment.

India attracted $81 billion in foreign direct investment (FDI) last fiscal year — about 5 per cent of global totals.

However, Shah noted that over the last 25 years, India’s cumulative gold imports of over $500 billion have surpassed its net FDI inflows, effectively turning it into a ‘capital exporter’.

Looking ahead, Shah reaffirmed India’s role as a global growth driver. With fiscal discipline, open markets, and consistent reforms, he said, India is well positioned to lead the world economy into its next phase of expansion.

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