Indians not buying India story: Blackstone

Joining the chorus of a recovery in emerging markets, Stephen Schwarzman of Blackstone Group said emerging markets have more or less hit the bottom and will start coming up. China will continue to see around 7 percent growth.

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He says in 2014, there ought to be further acceleration in growth in the US probably in the 3 percent type of area, plus or minus a little bit. The Middle East, in terms of healthy countries there, will grow pretty rapidly. Europe will slowly recover - they will show a little growth but of a very little base. So the euro will still exist and so we have moved one step further past the financial crisis.

He doesn’t know whether India is competing with Europe per se or with the US. India is competing with itself, he says. “India has made it a lot more difficult to invest in India because Indians have more or less lost confidence in their own country,” he told CNBC-TV18’s Menaka Doshi in Davos. There has been a real change over the last 3-5 years, he adds. Some of it was tax issues, lack of reforms, devolvement of power to states instead of the central government and there seems to be some sense of pause, at least to the outsiders, in the whole country as they await elections in May. If India stays in this current muddle then outsiders will look at it and not be sure of what to do, he adds.