Current Slowdown in India, "It isn't a recession, Its a remarkable Investment opportunity"

India is currently experiencing slowdown but still remains a great long term play and the current decline in the Indian economy is a remarkable opportunity to invest more capital in the country, says Mr, Stephen Schwarzman, Chairman, CEO & Co-founder of Blackstone.

Views on global slowdown:

Its pretty clear that globally the economy is slowing down at different rates in different parts of the world.

Staring with US, they are slowing in manufacturing but they still have a full employment economy, They still have high levels of consumer confidence and consumers create 70% or may be even little more of the economy in the US. So, if manufacturing, which is roughly 11% is a little slower, in fact, going down then they can still keep growing for quite sometime unless there is something that shakes confidence, which is really a geopolitical type of event that can not predict.

In Asia, China, which is the biggest economy by far, is slowing. What they report is sort of difficult to know if it is connected with exactly what is going on. They have lot of policy things they can do to keep their economy going but the bias will be lower rather than higher and because China is going down, that affects emerging markets (EMs) because EMs are the big suppliers to China.

In India itself is experiencing a slowdown, what feels like a slowdown in India isn't a recession , It is just a lower levels o growth. It may feel like a recession but it is not.

Mr. Stepehen Schwarzman says, "We think India is a great long term play, It is an increasingly educated population. GDP per capita goes up, its a huge population country, which probably 10-20 years will be the largest population in the world. It shares western values in term of legal systems and ability to do business.

We have a long term positive view on India and when things go slower for us in a way that is even a better opportunity because people need to sell assets because of credit issues in India, for us we can be long-term investors.

As long as we can improve any asset that we buy then we are very happy to do that because we think India will be one of the fastest growing countries in the World over a long-term basis.

So, it is a remarkable opportunity for us and we think overtime we are going to be putting a lot more capital into India.

and I think its an opportunity. We also own 22 companies in our private equity area, which has also been interestingly our highest return private equity business in the world. So the reason we are positive on India is that it has been a terrific for us."

Source: CNBC-TV18

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