Blackstone, a leading global investment firm, has declared that India has "already arrived" and should no longer be categorized as an emerging market. Stephen A. Schwarzman, chairman and CEO of Blackstone, articulated this view at the World Economic Forum in Davos, highlighting India's significant growth potential.
Schwarzman emphasized India's vast long-term growth trajectory, noting its stable government, substantial capital needs, and the industrious nature of its population. He pointed out that India's gross national product per capita is around $3,000, significantly lower than the US at over $70,000 and China at roughly $13,000, indicating ample room for expansion.
Blackstone plans to broaden its investment footprint in India beyond its current substantial presence in private equity and real estate, where it is already the largest foreign direct investor. The firm intends to expand into infrastructure and private credit, further capitalizing on India's development.
Schwarzman also commented on the stock market, describing it as emotional and unpredictable in the short term, contrasting it with the staying power of private equity. He acknowledged that while foreign investors might periodically exit Indian stock markets, this represents a short-term phenomenon within what he views as a long-term bull market for Indian stocks.
The CEO also touched upon the transformative impact of artificial intelligence, comparing its potential to that of electricity and the steam engine, but with a much faster adoption timeline. He expects AI to drive change in 10 years, compared to 50 years for previous technological revolutions.
