In today’s global economy, many powerhouses are struggling, making it difficult for worldwide executive search organizations to fill in much-needed personnel gaps. Prosperous conditions in India, however, present a unique opportunity for growth.
Bleak Worldwide Conditions
There are valid reasons for leaders of worldwide executive search firms to feel pessimistic about the global macroeconomic conditions. In recent years, American economic performance has been lagging. And the results of the upcoming U.S. election could potentially negatively impact it further. Countries in the European Union also following the Brexit vote. They are lucky if their GDP growth hovers at one percent. Japan’s policies seem to have little effect on its woes; and Brazil is in a period of dire political upheaval following years of entrenched government corruption.
Hope in India
The Indian economy, however, paints a different picture. Although the country’s GDP growth has slowed slightly from its pace of 7.9 percent in the final quarter of the previous fiscal year to just above 7.1 percent in this recent quarter, India is still outpacing its rival, China. In fact, India is one of the most reliably expanding economies on the planet. In recent years, government spending in India has increased significantly. In the first quarter of 2016, it was 18.8 percent. This marked a sharp rise since 2014. The manufacturing and services sectors also showed dramatic growth by expanding to 7.4 and 8.9 percent, respectively.
Reasons for Growth
Prime Minister Narendra Modi has tried to implement economic policies to boost growth. His fiscal policies have focused on improving the quality of spending by targeting and enhancing infrastructure investment. There has also been an emphasis on reducing the overall deficit and lowering inflation.
In addition, Modi has been on a quest to reduce red tape for private companies and facilitate the ease of doing business. Exceptional workforce performance and strong urban growth in many different regions has spurred prosperity. India remains open and welcoming to businesses across a variety of industries, including construction, life sciences, healthcare, and technology. This has resulted in the creation of more jobs. The economic growth in India offers vast potential for worldwide executive search companies. Hopefully, global conditions will begin to improve so that other parts of the world can also start reaping dividends.