It's the era of India, GDP to grow 8-10% for a decade: Fink

Mumbai: Global asset management major BlackRock's Chairman and Chief Executive Larry Fink on Wednesday called the next few years as the era of India, estimating that the country's GDP will expand 8-10 per cent every year over the next decade.

Fink, whose firm is in an equal joint venture with Jio Financial Services for asset and wealth management play in the country, urged Indians to invest in the capital markets, and not to park their money in bank deposits.

He cited the US experience, where those investing in capital markets benefited more through compounding, as compared to the bank account savers.

"In the era of India, we need to get more people investing alongside the growth of the country," Fink said during an event organised by Jio BlackRock here.

Over the next 10-plus years, India will grow anywhere at 8-10 per cent, the visiting executive said during a chat alongside Reliance Industries' Chairman and Managing Director Mukesh Ambani here.

Pointing to intellectualism as a key factor making him optimistic about India, he said India's utilisation of technological progress to transform commerce, consumption and information is inspiring.

Taking a cue from Fink, Ambani called it the baby-boomer generation and added that sustained double-digit growth is possible in the country.

It can be noted that the Budget for FY27 assumes a 10 per cent growth in the GDP on a nominal basis.

The partnership between the two companies on the financial sector play in India was struck within five minutes in 2023, and Fink added that this was also driven by the bond of friendship between the two entrepreneurs.

Ambani said India has traditionally been a nation of savers, but rued that Indians invested over USD 60 billion in gold and USD 15 billion in silver last year.

The opportunity for Jio Blackrock is to "convince" the Indian saver about the capital markets and channel the savings, he said.

Ambani, who is credited for disrupting the telecom sector with low-cost offerings in the past, said it will use technology-based distribution for the disruption in the asset and wealth management space.

India has better and cheaper 5G telecom connectivity in all her villages than anywhere else in the world, he said.

The richest Indian said sustained law and order, coupled with social harmony are "prerequisites" for economic growth and added that stable economic leadership like that of Prime Minister Narendra Modi defines a country.

Pointing out at the aspirations of Indians, Ambani said he sees 100 new Reliances emerging in the future.

Ambani urged Indians not get scared of artificial intelligence, reminding that humanity moved forward even with a disruption caused by the Industrial Revolution.

AI will help the country educate 200 million children in the next few years, and solve challenges in healthcare, security and taxation fronts, he said.

On the energy front, Ambani said there will be bigger strides towards self-sufficiency going forward and "we will not be a country importing 80 per cent of energy needs in a decade".

Speaking at the same event, Jio Financial Services' Chairman K V Kamath said he sees mutual fund assets under management more than double from the current Rs 80 lakh crore over the next five years.

BlackRock Chief Operating Officer Rob Goldstein said capital markets and mutual funds need to grow for India to become the third largest economy in the world.

Kamath, who has had a long stint with ICICI Bank, said banks will have to reinvent themselves over the next few years given the changes in the financial and tech landscape.

He said Jio Blackrock has signed up 10 lakh investors since launching its maiden fund seven months ago, and a fourth of the investors are tasting MF for the first-time in their lives.

Hitesh Sethia, the Chief Executive and Managing Director of Jio Financial Services, said 2 crore users have signed up with the company since its launch.