Asia will remain a strong economic region in comparison to the US and Europe and India is one of the brightest spots in the South Asian region, said Benjamin Hung, the Asia chief executive for UK-based Standard Chartered Bank, in an interview with Mint.
"Europe will probably be going through a tougher patch next year. The US, because of its monetary policy tightening, will probably see a slowing of growth. But I still think Asia will remain a strong economic region relatively," said Hung.
"India is definitely the one leading the South Asian region. There is Asean and China as well. These three are very potent engines, individually and in a connected way," Hung added.
Hung said unlike in the past when the East was manufacturing for the consumption of the West, it may now be the East manufacturing for the consumption of the East.
This will be an important change and India looks set to gain from it.
"For India, I will say the stars are very aligned. It is one of the few markets to be in a sweet spot. It is doing well economically but is yet to reap its demographic dividend entirely. When India’s average gross domestic product (GDP) reaches a certain middle-income stage, consumption ramp-up will be very fast. We have not even reached that point yet," said Hung.
"India is a powerhouse that people will be investing in; it will be a China-plus-one strategy and a great place to do diversification. With the government focusing on production-linked incentive (PLI) schemes, hopefully, we will be getting the whole sector going, and there is a lot we can do to help redistribute supply chains," said Hung.
Disclaimer: This article is based on a Mint interview. The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.