KPMG India’s CEO, Yezdi Nagporewalla, has expressed concerns that India may not escape the impacts of a global economic downturn, particularly with upcoming elections. He stated that India is currently experiencing a positive growth trend and remains the fastest-growing major economy worldwide, but the global economic landscape is posing challenges.
Many large economies are facing issues such as slowing growth, high-interest rates, and military conflicts. India is also gearing up for elections, which can make the situation precarious. While India’s GDP growth is predicted to be around 6.3% for the fiscal year 2023-24, the global economic environment is uncertain.
India has made efforts to attract businesses looking to diversify their supply chains away from China. The government has introduced measures to boost the manufacturing sector, but Nagporewalla acknowledged that India faces competition from countries like Vietnam in the low-cost manufacturing sector. However, India’s distinct advantage is its large, skilled talent pool. It boasts one of the world’s largest English-speaking populations and has made significant investments in education and skill development, which is now starting to pay off.
India’s growing green energy sector also offers significant opportunities. The country is attracting investments in areas like hydrogen, green energy, energy storage, and advanced battery technologies. These investments align with India’s commitment to green and sustainable development.
KPMG CEO Nagporewalla also touched upon concerns about the audit quality of Indian companies, emphasizing that these concerns are not unique to India but a global issue. He mentioned that the Indian government is taking steps to improve audit quality in alignment with international standards, such as IFRS (International Financial Reporting Standards). While progress is being made, it will require time and testing to ensure its effectiveness.
