At the Horasis India Meeting in Adelaide, Ashishkumar Chauhan, CEO of the National Stock Exchange (NSE), shared his insights on the current state of global economic recovery with a specific focus on India and Australia. Comprehensive analysis of Ashishkumar Chauhan touched on various global events, economic trends, and the evolving partnership between India and Australia.
Global Economic Recovery and Challenges
Chauhan commenced by discussing the post-COVID economic landscape, marked by the Russia-Ukraine conflict and tensions in the Middle East. He highlighted the global financial crisis’s aftermath, leading to significant quantitative easing and subsequent inflationary pressures worldwide. This inflation, according to Chauhan, was exacerbated by rising commodity prices, particularly oil and natural gas, due to the geopolitical situation with Russia.
Impact on Global Interest Rates and Emerging Economies
The CEO noted a significant rise in interest rates in the U.S. and Europe, the first of its kind in two decades, which has elevated global borrowing costs. This situation has particularly impacted emerging economies, with countries like Pakistan, Bangladesh, Sri Lanka, and Argentina facing severe financial challenges
The Quad and Indo-Australian Relations
Chauhan highlighted the strategic importance of the Quad alliance, comprising India, Australia, Japan, and the U.S., in the Asia-Pacific region. He emphasised that Australia and India, now integral parts of Quad, are increasingly aligning due to shared security and geopolitical interests. He metaphorically stated that “geopolitics eats economics for breakfast,” underlining the primacy of political factors in economic decisions.
India-Australia Economic and Cultural Ties
Chauhan encouraged Australian investment in India, citing the country’s vast infrastructure needs and the potential for high returns. He drew parallels with Canadian investments in Indian infrastructure, suggesting a similar path for Australian investors. Additionally, he highlighted the cultural bond between the two nations, exemplified by their shared passion for cricket.
As India and Australia continue to navigate their partnership through economic, geopolitical, and environmental dimensions, the potential for growth, innovation, and shared success is immense. This partnership, underpinned by strategic collaboration and a shared vision, stands as a beacon of hope and opportunity in the Indo-Pacific region. The journey ahead, undoubtedly filled with learning and cooperation, heralds a new era of prosperity and understanding, making a significant impact on the global stage.