scorecardresearchIndia well-positioned on several fronts; QT is necessary: Jane Fraser of Citigroup

India well-positioned on several fronts; QT is necessary: Jane Fraser of Citigroup

Updated: 28 Jul 2022, 09:52 AM IST
TL;DR.
  • Fraser said the market will continue to see volatility and we are starting to see quantitative tightening (QT).
Market is likely to be volatile in the short term. Photo: Pixabay

Market is likely to be volatile in the short term. Photo: Pixabay

India is one of the few markets in the world that is well-positioned on several fronts, including quality, efficiency and scale, said Jane Fraser, CEO, Citigroup in an interview with the Economic Times (ET).

"India has a scale that many countries don't. India has become easier to do business - whether the UPI or some other frameworks are being put in place. So, having a backbone here is not something a lot of different countries do have. The government has done a remarkable job of having been very visionary," Fraser told ET.

"There is also the ability to reach a very large domestic market. Particularly given the dynamics of China and geopolitics, you don't want to be too dependent upon China. You do need the scale, the quality and the efficiency. India is one of the few markets in the world that can provide that," Fraser added.

Fraser said the market will continue to see volatility and we are starting to see quantitative tightening (QT).

"Rates get anticipated in the market and we are at the beginning of the QT. The impact on markets will be challenging. In the US, we see risk assets are coming down. QT is the one that the world is keeping a close eye on. The next six months are going to be quite telling," Fraser told ET.

Fraser said QT is necessary and it will be challenging for the market.

"Europe could well be a brutal winter. I think India is extremely well positioned for what lies ahead. I have no doubt that it will be India’s game. In the US, we are all going to be keeping an eye on whether it moves into recession in the next one or two years. The next few decades will be Asia’s. I see India as one of the superpowers and at the forefront of that," Fraser told.

Talking about inflation, Fraser said India does not have the same inflation that we are seeing in other countries and the central bank is taking action due to the forex impact.

Disclaimer: This article is based on an Economic Times interview. The views and recommendations made above are those of the analyst and not of MintGenie.

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First Published: 28 Jul 2022, 09:52 AM IST