By Shruti Menon Seeboo
The highly anticipated FinWise Annual Investment Summit recently convened its second edition at the prestigious Intercontinental Hotel Mauritius, Balaclava, on 22 July 2025. A standout speaker at the event was Mr. Ajay Tyagi, CFA, Head of Equities at UTI Asset Management, an organisation notably co-owned by the Government of India. Mr. Tyagi delivered an illuminating address that candidly confronted a pressing question frequently voiced among global investors: “Have you missed the bus? Is it too late to enter into India?” His presentation, rich with robust data and profound insights, systematically dismantled the notion of a missed opportunity, powerfully articulating why India’s economic and market ascendancy is poised for continued robust growth over the coming decades. He presented a compelling case for India not just as a thriving economy, but as a meticulously managed investment destination.
UTI Asset Management: A Legacy of Focused Growth and Unwavering Commitment
Mr. Tyagi began by offering a concise yet compelling introduction to his organisation, UTI Asset Management, a venerable institution that sets the stage for his comprehensive analysis of India’s investment landscape. He proudly stated, “We are the oldest asset manager in India. We came into existence in 1964 by a special act of parliament. That was the time when India just gained independence.” He underscored the foundational mandate bestowed upon UTI in those formative years: “On one side, basically try and foster a culture of savings by investors and households and on the other side, fight these savings into the capital markets, provide that essential capital to the fledgling Indian corporate sector.” This dual mission, he believes, has been admirably fulfilled with unwavering dedication over six decades.
UTI’s remarkable stability and singular focus in the asset management industry truly distinguish it. Mr. Tyagi highlighted this unique characteristic, stating with conviction, “The one thing which has held us together over the last six decades is that we have never taken eyeballs off Asset Management.” He contrasted UTI’s steadfast approach with other financial institutions of similar vintage that extensively diversified into myriad sectors such as banking, insurance, or broking. “But I think UTI is that only unique institution which has just stayed the course with eyes fixated only on asset management,” he affirmed, attributing this unwavering commitment as a “big reason for our success over the decades.” This dedication has cemented UTI’s position as one of India’s pre-eminent asset managers, overseeing “around $250 billion in overall assets.”
Furthermore, Mr. Tyagi emphasised the profound stability and experience of UTI’s investment team, a notable rarity in the typically high-turnover financial sector. He shared personal insights, revealing, “I’ve been with UTI for 25 years, starting my journey as an analyst, most of my other Portfolio Manager colleagues have been with UTI, all on an average, for about 20 years. So is the case with analysts who’ve been with UTI for 10 years or more.” This deep institutional knowledge, extensive collective experience, and long-term commitment of its professionals are clearly competitive advantages, fostering a consistent investment philosophy and an unparalleled understanding of the intricate dynamics of the Indian market. The retention of such seasoned talent, he implied, speaks volumes about the organisation’s culture and its long-term vision.
India’s Economic Metamorphosis: From ‘Hindu Rate of Growth’ to Global Powerhouse
Mr. Tyagi swiftly moved to India’s compelling macro-economic narrative, acknowledging the audience’s general awareness but providing crucial historical context that illuminates the nation’s profound transformation. He reiterated India’s current standing as the “fifth largest economy today, but about to become the third largest economy in just about a couple of years.” He highlighted the nation’s impressive real GDP growth rate of “6% plus” over the last decade, notably adding, “this includes the COVID year, when growth rates were negative around the world. So was the case in India.” Over the past two decades, this rate has averaged an even higher “6.5%,” showcasing a consistent and robust expansion.
The “seminal moment for India,” according to Mr. Tyagi, was the pivotal year of 1991. Prior to this, for the first four decades following independence, India experienced what economists controversially termed “the Hindu rate of growth,” struggling at a subdued rate of around “3%.” Mr. Tyagi explained the underlying ideological constraint: “The reason was our setup was more socialistic, where the state was controlling everything.” However, the reforms initiated in 1991 marked a monumental and transformative shift. “The minute the government decided to open up, unleash the market forces, unleash the entrepreneurial spirit of the Indian corporate sector, magic started to happen,” he enthused. While this economic awakening went largely “unnoticed for the first 10 years,” it became “noticeable, post 2000 and the magic became front and center. Post 2010.” This consistent, high-growth trajectory is precisely why, as Mr. Tyagi observed, “there are still people who feel that having missed it, and are we too late already?”
Demographics form a cornerstone of India’s compelling growth story, a unique advantage that Mr. Tyagi emphasised with considerable weight. He invoked fundamental economic principles, stating, “Growth in output, economic growth is a function of only three factors… growth in labour, growth in capital, growth in productivity.” While advanced nations often excel in productivity and the attraction of capital, “growth in labour is more organic, and it can’t be addressed so easily.” He vividly contrasted India’s demographic dividend with the stark realities faced by many other major emerging markets, which are confronting significant declines in their working-age populations. He cited alarming projections: South Korea’s working-age population is set to decline by 35% between 2020 and 2050, Thailand by 22%, China by 22%, and Russia by 17%. In sharp contrast, India, alongside Indonesia and a few African economies, stands out for “showing, going to be showing a meaningful growth, by which I mean at least 10 to 20%.” He stressed the vital importance of this distinction: “We should never forget this very, very important demographic advantage that countries like India have. We are still young. 65% two thirds of our population is still young. And I think that’s going to be one of those very important organic factors in our economic output.” This vibrant, youthful demographic represents a built-in tailwind for economic expansion.
This youthful population, combined with rapidly rising incomes, fuels a formidable domestic consumption boom. India boasts the “fastest growing in terms of per capita income growth, 6.3% over the last 15 years,” far outstripping the 2.5% for other emerging markets and a mere 1% for developed markets. “Incomes are increasing in India,” he affirmed. The synergy of these factors is powerful and self-reinforcing: “You have a young population which is getting into the workforce and therefore adding to consumption. At the same time, people who are already part of the workforce and who are already consuming are witnessing growth in disposable income, because they’re ever increasing per capita income, and the combination is leading to a massive consumption boom in the economy.” This strong domestic consumption, remarkably comprising “65 to 70% of India’s GDP,” provides a significant and unique buffer against global trade headwinds or external economic volatility. “That’s our pet rock, and that never goes away, regardless of what’s happening around the world,” Mr. Tyagi confidently declared, reassuring investors about India’s inherent resilience to external shocks like potential tariffs or shifts in global trade policies.
Macroeconomic Stability: A Bedrock for Sustainable Growth and Investor Confidence
Mr. Tyagi meticulously presented several macroeconomic indicators that underpin India’s robust stability and render it highly attractive for astute investors. He highlighted the consistent long-range growth, noting that “the only year we’ve had a negative growth is this, otherwise average growth rates of around six and a half percent.” This long-term consistency, even through global crises, speaks volumes about the fundamental strength of the Indian economy.
Inflation, a global challenge that has plagued many economies in recent years, has been remarkably well-controlled in India, a point Mr. Tyagi emphasised with considerable pride. “While the entire world has been grappling with inflation, inflation for India, even during the post COVID phase, hasn’t been a struggle,” he stated. He reminded the audience that for a high-growth economy like India, the central bank’s comfort zone for CPI inflation is “4% plus minus 2%.” Impressively, India has remained “well within that range, and we are actually in a very, very sweet spot today, inflation has been undershooting the central bank targets at 3.7%.” This favourable inflation picture recently led to “an unexpected 100 basis point cut in interest rates, and possibly another 25 basis” being anticipated, offering a significant tailwind for economic activity and corporate earnings.
Fiscal prudence is another crucial hallmark of India’s current trajectory, reflecting responsible governance. While the “fiscal deficit did spike up during COVID because the government obviously had to support the poor,” it “has been trending down ever since.” The government’s clear objective is to bring it “down below 4% over the next couple of years,” indicating a firm commitment to fiscal consolidation. Critically, Mr. Tyagi emphatically stated that India’s growth is not debt-fuelled, drawing a sharp contrast with other large economies that have relied heavily on leverage for expansion. “Unlike China, the growth in India is not being fuelled by an overdose of debt,” he asserted. He provided compelling figures to substantiate this claim: “Corporate debt to operating earnings is lowest ever. Household debt to GDP has been at 40% for 20 years running.” He compared this to China, where “household debt to GDP 20 years back used to be 20%, today is at 60%.” This low leverage across both corporate entities and households means, “the increase in GDP and therefore consumption in India, has been because of … the ever increasing per capita income and disposable income.” This robust, deleveraged expansion is a powerful indicator of sustainability and resilience. The health of the banking system further solidifies this positive macroeconomic picture, with non-performing assets at a “multi-decade low.”
Addressing currency considerations, a common concern for foreign investors due to potential erosion of dollar returns, Mr. Tyagi was transparent and pragmatic. “Yes, I must admit here we will continue to depreciate just like we have depreciated over the last 20, 30, 50 years,” he conceded. This is, he explained, a natural and expected consequence of a high-growth economy with inherently higher inflation. “So long as India remains a high growth country, inflation in India will thread significantly more than low growth economies, and that itself will lead to depreciation,” he explained, projecting an average rupee depreciation of “between 2 to 3%,” purely based on purchasing power parity. However, he provided crucial reassurance regarding currency volatility: “The Indian rupee is the black dotted line, and you will see consistently across life periods, it’s one of the most stable currencies in terms of volatility.” He emphatically stated, “You would not get into a period… when [India] has seen a sudden 20% depreciation.” This historical stability, combined with full currency convertibility and no restrictions on capital repatriation for Foreign Institutional Investors (FIIs), makes India a far more predictable and secure destination for international capital, mitigating the ‘hot money’ concerns that plague many other emerging markets. Mr. Tyagi also briefly highlighted the stability of India’s political system, citing an example of private institutions challenging sovereign ones in court and winning, underscoring the strength of India’s legal and institutional framework, which provides “comfort that you should have as an investor in India.”
Investment Philosophy: Quality, Growth, and Unwavering Long-Term Conviction
Mr. Tyagi then shifted focus to UTI’s distinctive investment philosophy, advocating for a straightforward yet highly effective and disciplined approach. “Why try and do innovative things? Why try and actually come out with strategies which are complex, complicated? Why not just simply have a very straightforward philosophy of identifying industries which are going to be enjoying on the structural growth that the Indian economy offers, identifying businesses that have created a competitive advantage and therefore a right to win in those industries?” he queried. The proof of a business’s intrinsic strength and competitive advantage, he argued, “should be very well and very convincingly displayed by their performance of the last three, five, 10 years.”
UTI’s investment philosophy rests on three fundamental pillars:
- Quality: “We like businesses that are generating return on capital higher than cost of capital,” Mr. Tyagi explained, defining the core of their quality screen. This criterion translates to identifying businesses with “very strong margins, very strong balance sheets because of strong cash flow generation and so on.” The aim, he clarified, is not to “discover the market, miss pricings, not buy at a cheap valuation, sell at a not so cheap valuation.” Instead, their core objective is to “identify businesses that are creating economic value, be patient long-term investors in them, so that this economic value generation and compounding of businesses gets translated into market value accretion.” This patient, value-creation focus distinguishes their approach.
- Growth: There is “no point buying a business, which is great, but it’s not compounding, because the consumer is not actually buying into the products or the services that businesses you know into,” he emphasised. A robust and persistent “growth trajectory over the next five to 10 years,” driven by consumer adoption or structural industry trends, becomes a “very, very important facet of the philosophy.”
- Valuation: Crucially, Mr. Tyagi stated, “our conversations never start with valuation. They only end with valuation.” He elaborated on this counter-intuitive stance: “We never get excited about anything when somebody tells us that, look, it’s trading so cheap.” UTI’s approach is not about finding deep discounts or dislocated market prices, but rather about securing ownership in the best, most growth-oriented businesses that will remain relevant to consumers for the foreseeable future. “We don’t want to be flipping our portfolios every now and then. We want to be owners of the best businesses that the Indian economy is to offer, and within that, the most growthy businesses that will remain relevant to the consumers over the next 10 years,” he affirmed. While valuation is the final check to ensure they are not “overpaying a whole lot,” he confirmed, “we don’t mind paying a fair value or a slight premium.” He illustrated this with a clear example: “We are not trying to buy $1 for 70 cents. We are happy to actually invest in a business which is worth $1 at $1 or even $1.05, in a way over paying 5% why? Because we think that the value of this business from $1 will become $3 and $5 over the next few years, and buying it at $1.05 is still very cheap.” The focus remains firmly on “the outcomes of the businesses, never on what the stock prices would do” in the short term, trusting that stock prices ultimately follow business fundamentals.
The results of this disciplined approach are compelling. UTI’s portfolio has consistently outperformed its benchmark in key metrics: operating revenue growth (consistently “about 4 to 6% higher”), operating profit growth (very similar outcomes, consistently higher), and return on invested capital (ROIC), with ROIC consistently “about 10 percentage points higher than the benchmark.” Furthermore, the portfolio maintains exceptional balance sheet strength, with “debt to equity… consistently negative, which basically means net cash rather than net debt,” a stark contrast to the index, which “has always seen high net equity.” This combination of a very “high active share of 67%” and remarkably “low activity” (portfolio turnover ratio of “just about 10%”) reflects their deep conviction: “we buy and we hold for very long till our hypothesis gets disproved or invalidated.” This long-term orientation means they “don’t bother about what’s there in the benchmark,” prioritising their core philosophy of owning great businesses.
Navigating Market Cycles and the Indispensable Power of Conviction
Mr. Tyagi concluded his presentation with an insightful examination of investment style innovation within the Indian equity market, specifically focusing on the cyclical outperformance of quality and value factors. He presented comprehensive data spanning two decades since 2006, illustrating distinct phases where “quality outperformance” (typically shown in blue on his charts) and “value outperformance” (often in yellow) have dominated. “This is how the cycles happen. In India, after a prolonged and the longest ever value cycle you started seeing quality outperforming,” he noted, indicating a current shift in the market’s preference towards quality.
He then delved into a “very important slide” that meticulously explained the underlying market environments that favour each investment style. By analysing 20 years of daily index values for quality, value, large-cap, and mid-cap indices, and categorising market environments as bullish (defined as more than 15% annual returns), bearish (negative returns), or normative (conditions in between), UTI’s in-depth study revealed clear and predictable patterns.
Mr. Tyagi explained the dynamics during bearish phases with clarity: “When markets get bearish, they’re negative. People throw out these value businesses. They just want to be into high quality, very steady balance sheets because they think that the environment has turned very vicious.” In such periods of market decline and uncertainty, investors instinctively prioritise safety and resilience. “There would be no re-rating. In fact, re-rating, and therefore the only anchor left in such environments is the strength of the underlying business. And that’s where during bearish environments… quality factor, despite markets being negative, outperforms, not only outperforms, gives, actually very strong returns.” This highlights the inherent defensive strength and superior return potential of quality investing during downturns.
Conversely, during periods of extreme bullishness or pronounced “risk on” sentiment, characterised by “a beta rally that’s happening,” Mr. Tyagi observes that the “value side does very well.” In these environments of exuberance, “People don’t want to get into very steady compounders,” as investors often chase higher-beta or perceived ‘cheaper’ stocks for quick gains, driven by broad market momentum rather than fundamental quality.
Interestingly, the study also revealed a consistent pattern in “normative environments”—market conditions that are neither extremely bullish nor deeply bearish. Mr. Tyagi noted, “It’s again, the quality factor which not only outperforms or outperforms very significantly.” This suggests that quality is not merely a defensive play but also a consistent, strong performer in more balanced and rational market conditions, underlining its all-weather appeal.
He distilled this comprehensive analysis into a key takeaway for investors considering UTI’s strategy: “Yes, do expect our strategy to underperform during massive market rises, whenever there’s a beta rally happening, whenever there’s risk on, but do expect our strategy to outperform whenever markets start to turn either questions, they’re still positive, they’re not negative, but they are cautious, or, of course, outrightly negative.” He linked UTI’s recent performance directly to these observed cycles, attributing their underperformance prior to 2024 to “a very strong beta rally,” and their subsequent significant outperformance over the last year to “markets turning cautious once again.”
Mr. Tyagi concluded his compelling address by emphasising the paramount importance of conviction and unyielding adherence to one’s chosen investment methodology, even, and especially, during challenging periods. “Any which way you look at it, I think what’s important is, and as they say, that there could be different roads to Rome, you need to choose that road. But more importantly, stick to it,” he advised. He reinforced this by stating, “all of us over here as investment professionals do realise that one important Holy Grail of investing, which is you could have a different methodology of reaching to that part of gold. What’s more important is you should stick to it, especially during periods of stress and when your strategy is not working.”
He presented historical data spanning 20 years, showing that “whatever style you have,” be it momentum, quality, or value, “if you stick to it, you do have the ability to outperform the benchmark and that too significantly.” However, he candidly cautioned against the profound emotional and psychological challenges this discipline presents. “Over the last 15 years, you can see many years when any one style would have underperformed the benchmark by 10-15% and that becomes a period which is unbearable, because investors say that, how can you underperform by 10% and then you start to make changes in the portfolio when you should have been backing the stuff, where you are convinced what have underperformed.” He proudly concluded by articulating UTI’s unique competitive advantage: “that’s the biggest differentiation I can say very humbly that UTI brings to the table compared to most other managers, which is that we back each other during times of stress. We remind each other that a look at the history over the last two or three decades in India tells us that if your stock selection is right continue backing it, because eventually you would not only do well, but will significantly outperform the benchmark.” With this powerful and deeply personal message on the indispensable role of long-term conviction, Mr. Tyagi concluded his truly insightful address, opening the floor for questions.
In conclusion, Mr. Ajay Tyagi’s comprehensive address at the FinWise 2nd Annual Investment Summit served as a compelling and meticulously argued case for India’s continued investment appeal. His detailed presentation of India’s demographic dividend, robust economic growth, and prudent macroeconomic management firmly countered the notion that discerning global investors have “missed the bus.” UTI Asset Management’s disciplined philosophy, deeply rooted in identifying high-quality, growth-oriented businesses for long-term compounding, aligns perfectly with India’s inherent structural advantages and its trajectory as a global economic force. As India continues its impressive ascent on the global economic stage, driven by dynamic domestic consumption, robust policy, and a stable financial system, Mr. Tyagi’s insights affirm that the opportunity for astute international investors remains abundant, strategically sound, and built on fundamental strength.
A Q&A Deep Dive
Following his illuminating address on India’s promising economic trajectory, Mr. Tyagi engaged in a candid and insightful Q&A session. This segment offered a valuable opportunity for attendees to delve deeper into specific concerns and macroeconomic factors influencing the Indian market.
On Investment Discipleship: When to Hold, When to Fold
One of the initial questions from the audience directly challenged UTI’s long-term “buy and hold” philosophy: how does one distinguish between a sound business enduring temporary stock price volatility and a fundamentally flawed investment hypothesis?
Mr. Tyagi provided a clear and disciplined framework for this critical decision-making process. He outlined a “boot camp” approach for evaluating underperforming positions: “Are we going right on the business but wrong on the stock price? Is our hypothesis about the business still valid in terms of what the business can deliver over the next five years? Is the business still relevant for its customers? Is the business still profitable for its customers?”
He stressed that if the answers to these fundamental questions remain a resounding “yes,” then, despite adverse stock price movements, UTI’s conviction holds. “If the answer to this is yes, then, notwithstanding the fact that the stock prices would be opposite to the hypothesis, we will not only stay on, we will actually double up on our positions,” he revealed, showcasing a robust belief in their underlying research.
However, Mr. Tyagi acknowledged the inevitability of making incorrect calls, stating, “no matter how diligent we are with our research, 20, 30% of the calls will always go wrong.” In such cases, humility and prompt action are paramount. He described the “other bucket” where their initial business hypothesis proves incorrect—for instance, if they mistakenly believed a business solved a unique customer problem or enjoyed strong industry structure with “massive pricing power.” When this conclusion is reached, UTI does not hesitate. “If we reach to this conclusion, then we exit,” he asserted, explicitly rejecting the common investor’s tendency to “anchor ourselves that, look, my purchase cost was $100, let the price come very close to $100 then I’ll exit.” Instead, they “very humbly accept the fact that we’ve gone wrong in terms of understanding the business and we must correct this mistake.” This pragmatic and unsentimental approach to portfolio management underscores their commitment to fundamental analysis over emotional attachment to prices.
The Double-Edged Sword of Global Trends: AI and a Weaker Dollar
A question from the floor then turned to the broader global economic landscape, specifically the potential impact of a weakening US dollar and the rise of Artificial Intelligence (AI) on India’s export-oriented economy, alongside insights on short-term output.
On Artificial Intelligence (AI): Mr. Tyagi candidly admitted the nascent stage of AI’s direct impact on corporate India, stating, “AI is an evolving subject, and I can only say that even we are learning about the impact of AI on corporates around the world… quite honestly, we aren’t getting any specific answers from corporate India.” However, he drew parallels with historical technological waves, invoking the “survival of the fittest” hypothesis.
His high-level view on AI’s implications was clear:
- Corporate Adoption & Productivity: “For those corporates who adopt AI, they would actually be ahead of the ones who don’t adopt it in the same industry. That’s point number one, this will be net productivity.” He cited the US as a prime example of productivity improvement driven by early technology adoption.
- Workforce Retraining & Disruption: AI will inevitably lead to disruption in employment. “For those employees who are able to retrain themselves, stay relevant because of new wave of technology, they will survive, not just survive, thrive and do well.” Conversely, those who fail to adapt “obviously will fall along the wayside.” He reiterated that this is a recurring theme with every new technology wave, occurring every “10, 15, 20 years.” UTI’s focus on quality businesses, he added, means they seek out companies that “have strengthened their competitive advantages,” making them early adopters and market share gainers in the face of such technological shifts.
On a Weaker US Dollar and Indian Exports: Addressing concerns about a weakening US dollar, Mr. Tyagi reiterated a fundamental point from his main presentation: “India is a domestic consumption driven economy.” He quantified this, stating, “Exports as a percentage of GDP are, give or take, between 10 to 15%.” (According to World Bank data, India’s exports of goods and services as a percentage of GDP were 21.18% in 2024, slightly higher than Mr. Tyagi’s broader estimate, but still underscoring the dominance of domestic consumption).
Crucially, he clarified the limited direct exposure to the US within India’s export basket. “Within this 10 to 15% [exports], the US is a tiny fraction of our exports.” He noted that while “US dollar is weakening against most of the currencies, including the Indian rupee, therefore impacting our export revenues,” this is not uniformly true across all major currencies. “That’s not the case with the euro or the yen or the pound.” He estimated that “5% of 15%,” meaning approximately 5% of India’s total exports (which themselves are 10-15% of GDP) are exposed to the US and thus “possibly at risk” from the dollar’s “two or 3% depreciation.” This analysis effectively mitigated concerns about a significant drag on India’s economy due to dollar weakness, reinforcing the country’s domestic-led resilience. (As per recent data, the United States is indeed India’s largest export destination, accounting for approximately 17-18% of India’s overall merchandise exports in 2023-24).
Decoding Household Debt Dynamics
A pertinent question arose regarding the increase in India’s household debt, specifically whether it had risen significantly over the past decade and concerns about unsecured lending.
Mr. Tyagi acknowledged the increase in absolute terms: “Household debt in India gone up by 3x 4x over the last 10 years? The answer is yes.” However, he immediately contextualised this by linking it to the simultaneous growth in nominal GDP. “But so has the nominal GDP. So therefore, what’s important for us is to track the number of household debt as a percentage of GDP, and which is where we are still at 40%.” This figure has indeed hovered around 40-42% of GDP in recent years (for instance, 41.9% by December 2024). This comparative stability as a percentage of GDP suggests that the growth in debt is largely proportionate to the growth in the economy and household incomes, rather than indicative of excessive leverage.
Regarding the rise in unsecured loans, Mr. Tyagi agreed that it was “a very correct observation.” He noted that “there was a time into the post COVID when household incomes were under stress. Unsecured loans as a percentage of overall loans increased, and that got RBI into action, and they got worried.” He confirmed that in 2023, the Reserve Bank of India (RBI) implemented “massive risk weights on the Indian banking system to control unsecured lending.” (Specifically, in November 2023, the RBI increased risk weights on consumer credit exposures for commercial banks and Non-Banking Financial Companies (NBFCs) by 25 percentage points to 125%, excluding housing, education, vehicle, and gold-backed loans. Credit card receivables saw an even higher increase).
The good news, he reported, is that this regulatory intervention has had the desired effect: “The good news is that six months, three or four months back, I forget the exact date, RBI has reversed that stance, because they’ve realised that the brakes that they put on the system have again led to one voluntarily and two as a response to the regulatory action have led to unsecured loans cooling off in the system.” This suggests that the central bank’s timely and decisive action has successfully managed the potential build-up of risk in this segment, bringing the situation back to a manageable level and allowing for a normalisation of lending.
BRICS: A Political rather than Economic Powerhouse?
Finally, a politically charged question probed the effectiveness and future of the BRICS bloc.
Mr. Tyagi’s assessment of BRICS was pragmatic and somewhat understated. He described it as “one of those forums where we thought that countries at a similar stage of their evolution can come together, express as a block, express their views to the G8.” However, he quickly tempered expectations regarding its practical impact: “but it’s never been a very, very successful platform.”
He openly stated, “So because it hasn’t been successful, I would not be too worried if, let’s say, in a way, BRICS becomes absolutely non-operational.” He attributed the recent increased discussion around BRICS more to external political commentary, particularly from the US, rather than a strong internal drive from member nations like India to fundamentally alter global financial structures. “I mean, I think people have started talking about BRICS, because the US President of the last two months has, I don’t know why, in his own wisdom, been talking about BRICS. He wanted to do this, do that, change US Dollar as the reserve currency. I mean in India I haven’t heard of the Indian comment saying that we need to change ourselves.” This implies that India’s focus remains firmly on its own domestic economic trajectory and established global relationships, rather than pursuing radical shifts championed by some elements within the BRICS narrative.
Mr. Tyagi’s responses during the Q&A session offered invaluable clarity and further reinforced the themes of resilience, prudent management, and long-term conviction that defined his initial address. He painted a picture of an Indian economy that, while not immune to global forces, possesses strong domestic buffers and a proactive regulatory environment, making it a compelling investment proposition for those with a long-term horizon.
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