Bharat is on the cusp of emerging as a formidable 21st-century economic force, offering an attractive alternative to China for investors seeking growth opportunities and risk diversification in their supply chains, as per a recent CNN report. Prime Minister Narendra Modi, along with industrialists Gautam Adani and Mukesh Ambani, are identified as pivotal figures shaping the trajectory of this economic transformation.
The report highlights the strategic initiatives undertaken by Adani and Ambani in sectors earmarked for development by PM Modi’s administration, garnering praise from investors. The ruling BJP Government’s substantial investment in infrastructure development is heralded as a catalyst for growth.
Furthermore, the Modi Government’s emphasis on digital connectivity is noted as a crucial enabler for both commercial activities and daily life enhancements.
With a GDP valued at USD 3.7 trillion in 2023, Bharat has ascended to become the world’s fifth-largest economy, climbing four spots in global rankings during PM Modi’s tenure and overtaking the United Kingdom.
“It is comfortably placed to expand at yearly rate of at least 6 per cent in near future, but analysts say the country should be targeting growth of eight per cent or more if it wants to become an economic superpower. Sustained expansion will push Bharat higher up the ranks of the world’s biggest economies, with some observers forecasting the South Asian nation to become number three behind only the US and China by 2027,” stated the CNN analysis.
Reliance Industries and the Adani Group, both with valuations exceeding USD 200 billion each, have set up businesses in sectors ranging from fossil fuels and clean energy to media and technology.
“Investors have been cheering the duo’s ability to adroitly bet on sectors prioritised for development by PM Modi, currently campaigning for his third consecutive term to lead Bharat. The South Asian country is set to become a 21st-century economic powerhouse, offering a real alternative to China for investors hunting for growth and manufacturers looking to reduce risks in their supply chains,” mentioned the report.
“As a result, these three men – PM Modi, Ambani and Adani – are playing a fundamental role in shaping the economic superpower Bharat will become in the coming decades,” it added.
It said that journalists often contrast Adani and Ambani to John D Rockefeller, who became America’s first billionaire during the Gilded Age, a 30-year period in the late 19th century.
Mumbai, Bharat’s financial hub, has the imprint of the two tycoons everywhere, noticeable in everything from high-rise buildings developed by Adani Realty to cultural establishments bearing the Ambani name. Even the city’s international airport is now under Adani’s operation.
“Some spaces need no names or bright labels, but their affiliations are just as obvious. Everyone in Mumbai knows who lives in Antilia – the personal skyscraper of Ambani and his family, which reportedly cost $2 billion to build and boasts a spa, three helipads and a 50-seat theatre. The 27-story building sits on a street dubbed Billionaires’ Row, its jutting geometric architecture looming over the neighbourhood.”
The CNN report highlighted the grand pre-wedding celebration of Mukesh Ambani’s son Anant Ambani, when many high-profile celebrities like Mark Zuckerberg, Bill Gates and Ivanka Trump were in attendance. The celebration, which saw performances by popstar Rihanna and magician David Blaine, transfixed Bharat and further highlighted Ambani’s growing global clout.
Macroeconomics professor Guido Cozzi at the University of St Gallen in Switzerland noted both the Adani Group and Reliance Industries were founded years before PM Modi came to power. “They are not typical stagnant monopolistic conglomerates. They are pretty dynamic,” remarked Cozzi.
He further said they are not only playing an ‘important role’ in building infrastructure but the two business groups are also helping the country expand “indirectly” by boosting connectivity through digital innovation.
The report said Mukesh Ambani’s ambition and breathless pace of expansion is matched by Adani. As per a January report by American brokerage firm Cantor Fitzgerald, Adani Enterprises Limited or AEL “is at the core of everything Bharat wants to accomplish.”
AEL serves as an incubator for Adani’s numerous ventures, with scores of them emerging as top players in their respective industries. Cantor notes the company’s present emphasis on airports, roads, and energy positions it as “a unique long-term investment opportunity.”
The report notes while both the barons established much of their fortune from fossil fuels, they are currently investing billions in clean energy. Notably, their green energy pivot comes at a time when Bharat has set itself some ambitious climate goals.
The report quoted experts saying “some amount of closeness” between politicians and business elite “can help in growing the nation faster.” It suggests Bharat needs to encourage entrepreneurship and innovation bringing more firms into the sphere.
“They are phenomenal entrepreneurs, who have been able to sustain steady growth and development in a vibrant yet sometimes chaotic political and business environment that exists in Bharat,” commented Pennsylvania State University economist Rohit Lamba, who is the co-author of Breaking the Mould, a 2023 book on how Indian economy can grow.
“Bharat cannot grow rich before it becomes old on the back of a few big firms like Adani or Ambani… Bharat should make more firms,” he added.
The report says Bharat’s other conglomerates – the 156-year-old Tata Group wields immense power over numerous key sectors ranging from steel to aviation, but it often does not invite the scrutiny, mainly because it is controlled by philanthropic trusts.
Bharat has been the fastest-growing large economy in the last three financial years.
