Billionaire investor Ray Dalio has projected India's 10-year economic growth rate at 7 percent, saying the country possesses the right combination of ingredients that demonstrates it has huge potential along with effective leadership to catalyse it.
A day after Chandrayaan-3 made India the first country to reach the lunar south polar region, the legendary investor wrote on the microblogging website X, formerly Twitter, “India's successful lunar mission (landing its Chandrayaan-3 spacecraft on the moon) is another one of many straws in the wind showing its ascendence”.
“As previously shown in my health index for countries, which is used to derive my projections for countries’ next 10-year growth rates, India scores on top with a projected growth rate over the next 10 years of about 7 per cent. It has the right mix of ingredients that shows that it has great potential and the right leadership to catalyze it,” Dalio wrote.
Also Read: Ray Dalio says China is overdue in reducing its debt
“It reminds me a lot of China in 1984 (when I first went) around the time Deng Xiaoping made his reform and opening up policies that catalyzed China. Congratulations India!”.
Known for unveiling a slew of measures that took China out of poverty, Deng was the leader of the communist country from 1978 to 1989. Under his leadership, the reforms transformed the economic system, kickstarting a phase of remarkable economic growth. This era of growth not only propelled the country out of isolation but also positioned it firmly within the modern global economy.
Dalio has around $3 billion invested in Chinese businesses but even he's convinced the country's economy needs a massive restructuring, Fortune has reported.
Also Read: Ray Dalio says India set to clock highest growth in the world
“As for the debt and the economy, there is an obvious need for a big debt restructuring of the sort that Zhu Rongji engineered in the late 1990s, just much bigger," Dalio wrote in a LinkedIn post.
The author and co-founder of hedge fund firm Bridgewater Associates met Prime Minister Narendra Modi during his state visit to the United States in June. Dalio also praised Modi, that India had seen the biggest transformations under his leadership, drawing a parrel between the PM Deng.
Dalio said Modi possessed the capabilities to make the most significant impact on a vast number of people globally, especially at a juncture when the potential risks and challenges were greater than they had been in recent memory.
Dalio's growth projection seems to be at odds with that of the International Monetary Fund (IMF), which lowered its forecast for India. IMF data released in July suggested growth would drop from 7.2 percent in FY23 to 6.1 percent in the current financial year and then rise slightly to 6.3 percent in FY25.
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