India is the engine of global growth train in coming years, says Nilesh Shah of Kotak Mahindra AMC

“At 3.5 per cent of global GDP, India may seem a minnow today. But incrementally, we drive 8-10 per cent of world growth, and on PPP (purchasing power parity) terms, our share of expansion nears 18 per cent, India is the engine of global growth train in the days to come,” Shah said at the Kotak International India Insight Summit held at The Metropolitan Club New York, recently.

At a per capita GDP of $2,940, India ranks 136th worldwide—a reminder of the journey ahead. However, it stands as the fourth-largest economy, surpassing $4 trillion in nominal GDP this year, a meteoric leap of six spots in just a decade—from 10th to 4th, he said.

Speaking on fiscal prudence, he said that while India’s consolidated deficit (center plus state) hovered over 7 per cent of GDP last year, it is the only major economy to lower its debt-to-GDP trajectory between the 2008 sub-prime crisis and post Covid crisis in 2025.

He said India is routinely called to open its economy and the markets for global investment flows, yet it is the only country where foreigners own majority of its largest listed bank, asset management company, automobile company, FMCG company, telecom company and engineering company, among others.

“India freely allows Meta, X, Google, Yahoo, WhatsApp, Amazon, etc., to operate which China has blocked,” Shah said.

India drew $81 billion in FDI (foreign direct investment) last fiscal year, about 5 per cent of global totals, yet over 25 years, net gold imports topping $500 billion have edged the country toward capital exporter status, as it exceeds net foreign direct investments, he said.