The United States and India are shaping up as key markets amid macroeconomic shifts and growth opportunities, according to Rishi Kapoor, Vice Chairman and Chief Investment Officer at Investcorp.
Speaking at the World Economic Forum in Davos to NDTV Profit—a gathering for global leaders to address economic and social challenges—Kapoor discussed the firm's strategic focus and how these regions align with its investment priorities.
US Exceptionalism to Continue
Kapoor noted that the US, as the world's largest capital market, remains a cornerstone of Investcorp's investment focus. “The baseline expectation has got to be one of continued US exceptionalism,” he said, citing the administration's emphasis on long-term economic growth and grassroots development.
He added, “The US is sitting on reserves of energy and significant leadership in technology, making it a more business-friendly destination for capital investment.”
Kapoor also acknowledged the uncertainty surrounding global interest rates and trade policies but expressed optimism about the prudent approach of the US administration. “There is a degree of prudence embedded into the administration's policy agenda,” he said.
India: A Fast-Growing Market
India, described as one of Investcorp's fastest-growing markets, offers robust long-term opportunities, Kapoor explained.
“If global growth is indexed at 3%, India is expected to outpace that by 200 to 300 basis points in real GDP growth in the medium to long term,” he said. Factors such as population growth, infrastructure development, and regulatory reforms are driving this growth.
Investcorp is focusing on sectors like healthcare, financial services, IT services, and manufacturing in India. Kapoor noted the importance of affordable healthcare, adding, “Single-specialty healthcare focusing on the emerging middle class is a key area of interest.” The firm is also investing in energy transition and clean technologies to support urban expansion and sustainable development.
Kapoor noted inflation, interest rates, and geopolitical uncertainties as key risks to the global economic outlook. “If interest rates rise or trade wars intensify, the economic impact and inflationary pressures could affect capital costs and economic activity,” he said.
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