Indian stocks will attract investors amid global gloom, says Rahul Chadha of Mirae Asset

India’s stock market will become a key investment destination due to the country’s higher growth rates relative to the global economy, according to Rahul Chadha of Mirae Asset Global Investments Co.

Central banks offered excessive stimulus at a time when there were supply bottlenecks and workflow issues due to pandemic-induced disruptions, said Chadha, chief investment officer at Mirae Asset. Global Investments, to Niraj Shah of BloombergQuint in an interview. These issues are playing out now as the world opens up, he said.

Over the past nine months, central banks have been criticized for laggard and “act now or are forced to act when things slow down”, he said.

Chadha expects “a U-turn in six to nine months from central bank policymakers.” They will stop worrying about inflation and focus on growth, he said. Market volatility, he said, will persist during this period.

Chadha says parts of China are in lockdown, US GDP growth could slow, Europe is in turmoil due to the Russia-Ukraine crisis and the global economy is suffering from rising commodity prices . As a result, he said, the Indian market will become an investment destination due to higher growth.