Goldman Sachs Chairman and CEO David Solomon participates in a panel discussion during the annual Milken Institute Global Conference at the Beverly Hilton Hotel in Beverly Hills, Calif., on April 29, 2019.
Michael Kovacs | Getty Images Entertainment | Getty Images
India has a “very, very high growth trajectory,” but bureaucratic challenges remain, Goldman Sachs CEO David Solomon said in a note Exclusive interview with The Economic Times.
Economists at the investment bank expect India’s economy to grow by 6% to 7% over the next three years, Solomon said.
“It’s especially exciting as businesses around the world continue to diversify their supply chains and think differently about where there is growth and where they can do business,” he told the Indian news outlet. “It’s a real assessment here. Fascinating moment of what’s going on.”
There is a huge opportunity here because of the population size and growth, but there are challenges in how certain parts of the bureaucracy work…
david solomon
CEO of Goldman Sachs
The CEO spoke about deglobalization and what it means in “U.S.-China decoupling,” which refers to the removal of economic dependence between two rivals.
“There’s a lot going on in the world and I think looking at India, people see an opportunity. They’re looking at it a little bit differently than in 2019,” he said.
Sino-US competition
To be clear, he does not think the US and China are decoupling.
He said the terms of engagement would change in the future, “but this is not the same as a complete economic decoupling. This, in turn, presents a very interesting opportunity for India, but not without its challenges.”
However, investing in the country comes with its own set of challenges, he said.
The global CEOs he interviewed see India as “a huge growth opportunity, while recognizing some of the challenges of investing here.”
“There’s a huge opportunity here because of the size of the population and the growth, but there are challenges in how some parts of the bureaucracy work, and I know CEOs always think about and focus on those when they diversify their supply chains,” Solomon said. .
Read more about why Goldman Sachs is bullish on India in The Economic Times.