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Capital Ideas

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India
Trading places: India surpasses china as fastest grower

 


Prospects look bright for India, the world’s fastest growing economy. Prime Minister Narendra Modi is implementing reforms to ease the cost of doing business, modernizing India’s infrastructure and opening the country to more foreign direct investment. The government is also backing technological innovations in the banking system. Mobile banking transactions, fueled by the proliferation of mobile phones and growing internet usage rates, are skyrocketing. India’s private banks, including HDFC Bank and Kotak Mahindra, could be among the beneficiaries of a growing economy and mobile banking. Furthermore, India’s young population and move to a more digital culture is attracting leading American and Chinese technology companies, such as Amazon and Alibaba, that are expanding into the country or taking equity stakes in Indian startups.



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