(Bloomberg) -- India is in a better place today to speed up economic growth helped by the approach of the current government, Axis Bank Ltd. Chief Executive Officer Amitabh Chaudhry said.
“We have elections coming up in mid-2024 and we expect the current government to come back to power,” Chaudhry told Bloomberg Television’s Haslinda Amin in Davos, Switzerland. “It should be helpful for India to really achieve some of the goals and some of the aspirations people have talked about,” he said, adding that “things are aligning in favor of India.”
The $3.4 trillion economy, Asia’s third largest, is projected to expand 7.3% in the year through March, according to government estimates, buoyed by strong consumer and government spending, and a boost in manufacturing. Prime Minister Narendra Modi’s administration has ramped up infrastructure investment while overseas companies, especially in tech manufacturing, have been setting up factories in India.
Last month, Modi’s ruling Bharatiya Janata Party won three crucial state elections, strengthening his bid for a third term in office.
Chaudhry told BTV that he expects interest rates in the US to remain higher for longer and he doesn’t see the Reserve Bank of India cutting its benchmark this year.
Mumbai-based Axis is India’s third-largest private sector bank. The lender has said it’s benefiting from the rising affluent population and accompanying boom in consumption across India.
The bank last year closed on a 123 billion rupees ($1.5 billion) deal to acquire Citigroup Inc.’s consumer business in India, which included the Wall Street giant’s loans, credit cards, wealth management and retail banking operations. The deal also included 3,200 Citigroup employees.
The company previously warned that the battle for deposits has intensified as the RBI has hiked rates in recent quarters to rein in inflation and boost the rupee. India’s inflation accelerated to a four-month high in December as food prices climbed, supporting the central bank’s argument to keep rates higher for longer.
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