Economy’s swell, but reputation? Why India’s next growth story depends on how the world sees it

At a time of renewed global uncertainty where geopolitical alliances are revised and supply chains redrawn, India's strategic importance has never been more resonant. After years of bullish sentiment on India, however, international opinion has become notably more pessimistic, with concern raised over several short-term headwinds.

India's economic ascendency is incomplete. But one can argue that any major doubts should have been largely dispelled at this point. India defied sceptics in registering 7.8% real GDP growth for Q1 of FY27, bolstered by world-leading industry, from pharma to aerospace, and rapidly emerging sunrise sectors, while being home to more globally significant brands and individuals than at any point in recent history.

The country has consistently been ranked among the best-performing major equity markets over the past two decades, and its stock market is among the 5 largest in the world by market capitalisation, further recognised by India's increasing integration into major global indices. Private wealth accumulation has followed suit. Some projections suggest that up to 1% of India's adults will be dollar millionaires by 2030.


But there has been a recent subtle but significant shift in international and domestic media coverage, a much more cautious narrative around India's economic growth. This is not misplaced critique. As with greater success comes greater scrutiny.

India's economy is certainly enduring some short-term challenges, like many other economies at present, due to wider ongoing global geopolitical instability and cyclical capital rotation. This has caused consumer caution, while the rupee's value has fluctuated. Foreign capital is seemingly prioritising returns from other regions, such as East Asia, where AI and technology firms are proving particularly appealing to investors.

These short-term challenges should not be dismissed. Nor should cyclical or geopolitical headwinds be confused with a fundamental reversal of India's long-term trajectory. India's long-term drivers, from its demographic dividend to its culture of entrepreneurship, remain unaffected, and fundamentals for attracting capital also remain intact.

In today's hyperconnected and fast-moving world, reputation has moved from being purely a communications concern to becoming a genuine economic asset. India maintains highly bullish long-term projections, but will suffer when it comes to FDI, talent attraction, partnerships and investor confidence - unless the country and corporations that drive growth give greater strategic attention to reputation and adequately address and counter recent concerns about its economic performance.

Indian companies have historically been excellent at building and scaling businesses into significant international players, but less active in explaining or positioning those same entities among key international stakeholders.

Recently, in a conversation with the CEO of one of India's largest infrastructure-focused conglomerates on the growing importance of reputation management, he mused that a company in question would not need to engage in such services, as potential crises could be resolved by leaning on one's institutional connections for protection during periods of scrutiny.

There was a time when that argument carried much greater weight. Strong institutional and public sector relationships could often help to curtail reputational challenges before they gathered impactful momentum. Today, however, the information landscape has changed entirely. Information travels faster and is instantly accessible. Perceptions are formed immediately across countless digital touchpoints and geographies.

A relatively minor issue can now escalate rapidly into a global reputational event, with consequences for investor confidence, commercial partnerships and even the standing of a company's leadership. While these personal relationships remain of keen importance, they can be insufficient when it comes to engaging international markets and institutional investors, whether trying to navigate market entry abroad, maximise the potential of a capital raise, or navigate regulatory scrutiny.

Emergence of cutting-edge AI has accelerated this shift further. A failure to utilise these tools that exist today to monitor your company's reputation online and respond to negative sentiment can impact valuation, investor confidence and long-term growth.

If India's corporates now - rightly - see themselves as peers of the world's leading companies, then they must be prepared to match their competitors' strategy and commit to reputation management to maintain their seat at the top table.

An evolved model that focuses on a clearly articulated vision that extends to senior leadership and corporate social responsibility, uses data and technology to understand perception and engages stakeholders in India and overseas, must replace an outdated model of simply letting financial results speak.

India doesn't need to still convince the wider world of its relevance. Instead, it must now acknowledge that reputation today has become an integral part of economic infrastructure. It actively helps determine future success and ensure trust in institutions, businesses and leaders.

The Indian century? Yes. But economic power alone won't define it. Reputation will.

The writer is global partner and India head, Michael Macfarlane Associates