India is expected to play a critical role in global economic growth. Analysts predict that the synergy of active private sector investment and attentive government support will drive this growth.
According to industry sources on the 3rd, Henry H. McVey, Chief Investment Officer (CIO) of the U.S. private equity firm KKR, recently stated in a report titled “Thoughts from the Road” that “India is expected to account for 20% of global incremental growth over the next 5 to 7 years.”
He further analyzed that “an annual infrastructure transition of $4 billion to $5 billion from the government to the private sector will enhance growth efficiency.”
McVey advised that for India to achieve this growth, it needs to make the agricultural sector more efficient, improve infrastructure, secure cleaner and superior energy sources, and reduce the gap between high-end and low-end consumers.
According to the report, the state of India’s capital market is showing a favorable trend, including a stabilized currency value after the COVID-19 pandemic. Foreign capital inflow has increased, and various savings programs add depth and breadth to the stock market.
KKR continues to focus on and invest in India’s infrastructure and renewable energy sectors. More than $10 billion in investments have been executed, with $3 billion invested in the infrastructure sector.
Infrastructure investments include investments in Serentica Renewables, an Indian decarbonization platform, and the acquisition of a stake in LEAP India. It also consists of acquiring 12 road projects worth 900 billion rupees (approximately $10 billion) through the Infrastructure Investment Trust (InvIT) supported by KKR.
Hardik Shah, a partner in KKR’s India Infrastructure team, emphasized the depth of the Indian infrastructure market, attributing it to the active participation of the private sector and the government’s national revenue plan.
Hardik Shah explained, “The maturity of the infrastructure sector and the active ecosystem of investors, including Infrastructure Investment Trusts and private equity funds, are attractive factors that make India a major market for infrastructure investment in Asia.”
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