India’s remarkable economic growth presents extraordinary opportunities for investors, especially those within the Indian diaspora, according to Dr. K. V. Subramanian, the executive director for India at the International Monetary Fund (IMF). Speaking at the launch of his book, India@100: Envisioning Tomorrow’s Economic Powerhouse, Subramanian emphasized the transformative potential of India’s investment landscape and urged diaspora investors to leverage the country’s dynamic economic trajectory.
“The opportunities available for the Indian diaspora and American investors are extraordinary,” Subramanian said during the event hosted by the US-India Strategic and Partnership Forum (USISPF) on December 5. “Investors have the chance not just to double but to triple their money. Over a 20 to 25-year horizon, the returns in India are unparalleled compared to any other economy.”
Subramanian underscored that the diaspora’s engagement with India should extend beyond remittances to include active participation in the banking and financial systems. He highlighted the benefits of saving and investing directly in India, noting that such efforts could yield significantly higher returns than those offered by U.S. banks.
“Saving money in Indian bank accounts provides a much higher rate of return than in US banks,” he pointed out. “With the Indian economy growing at 12 percent in nominal dollar terms, salaries are expected to rise by 17-18 percent annually, doubling every five years. This kind of growth is transformative.”
The discussion also delved into the projections outlined in Subramanian’s book, which envisions India achieving a $55 trillion economy by 2047, aligning with the centenary of the country’s independence. He attributed this ambitious goal to sustained economic reforms and a robust policy framework implemented since 2014.
In response to questions, Subramanian expressed confidence in India’s ability to meet these ambitious benchmarks, describing the nation’s growth as both unique and sustainable. “India’s growth story is unique and sustainable, built on its demographic dividend, technological advancements, and reform-oriented policies,” he said.
For Subramanian, the diaspora’s role in India’s success extends beyond financial contributions, encompassing active participation in burgeoning sectors such as technology, manufacturing, and finance. He encouraged members of the diaspora to seize the vast opportunities available in these areas.
“Salaries in India could rise 100 times over a 30-year career compared to only seven to eight times in the US,” he explained, underscoring the country’s tremendous potential. However, he also acknowledged that improving quality-of-life indicators would be crucial for attracting expatriates to return or invest more substantially in the country.
As the event drew to a close, Subramanian reiterated his optimism about India’s future. “The next 25 years belong to India, and the diaspora has a critical role to play in this journey,” he concluded, highlighting the transformative possibilities for both the nation and its global diaspora.
With India’s economy poised for unprecedented growth, the call to action is clear: diaspora investors have a unique opportunity to contribute to and benefit from the country’s rise as an economic powerhouse.
