Davos 2024: PM Modi's likely return to power good news for investors, says Axis Bank's Chaudhry

India's inflation still needs to be managed, which means that we'll continue to see interest rates at this level and tight liquidity conditions for some time, said Amitabh Chaudhry

The Narendra Modi-led government's likely return to power is expected to give stability in terms of anyone planning for any kind of investment going forward in the future; said Axis Bank's Managing Director and Chief Executive Officer Amitabh Chaudhry on January 16.

"If you look at the trends, and surveys which are out there, it appears that the current government will come back in power without too much of a problem. No one can predict what will happen. But the expectation is that would this particular election, the Bharatiya Janata Party (BJP) going to come back in power. And that gives a bit of a little bit of stability in terms of anyone planning for any kind of investment going forward in the future. Global turbulence is a risk, " said Chaudhry in an exclusive interview with Moneycontrol at the World Economic Forum in Davos.

He further added that problems are coming up in the world unexpectedly and it does impact the overall sentiment, the interest rates globally are higher and expected to remain high.

"(In) India, inflation has not gone away, they still need to be managed, which means that we'll continue to see interest rates at this level and tight liquidity conditions for some time," said the Axis Bank official.

Many leaders at the World Economic Forum (WEF) 2024 are betting big on India's growth story, and one of them is S4 Capital's Martin Sorrell, who expects Prime Minister Narendra Modi to get re-elected as India nears the 2024 general election.

"We got an election in India and Modi will be re-elected and that is good for India and for the world," Sorrell, Executive Chairman, S4 Capital, a digital advertising and marketing services company, told Moneycontrol on the sidelines of WEF 2024.

Despite his pessimism about the world, he remained optimistic about India.

"He (Modi) is the ultimate master of branding and branding countries. He has done a superb job on positioning (India) and if you look at the GDP (Gross Domestic Product) growth in India, the last year's projections for this year, it will embarrass several other countries."

The advertising guru added that amid the geopolitical issues involving the US and China, the Russia-Ukraine situation, and the intense conflict in the Middle East, India has emerged as the go-to market and an alternative to China in Asia.