ET World Leaders Forum: Calling India ‘China+1' is 'intellectually lazy', says Kumar Manglam Birla, envisions growth engine role for the country

Aditya Birla Group Chairman Kumar Mangalam Birla on Friday described calling India a "China+1" destination as "intellectually lazy," arguing that the narrative underestimates the country's scale and capability.

Speaking at The Economic Times World Leaders Forum, Birla said, “People talk about China plus one for India, and while that's a convenient shorthand, I think it's intellectually very lazy. I think what we should be talking about now is the world plus one for India. I think we have our own takes, we've got a track record, and I think that we really can be a growth engine for the entire world.”

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Birla said large industrial groups have been investing heavily, signalling that corporate investment activity is beginning to pick up.

He said there is a need to distinguish between capital discipline and conviction about India. Companies assess investments based on factors such as returns, volatility, industry conditions and global developments, he said, but this should not be mistaken for a lack of confidence in India.

“I'm finding that conviction about India is perhaps the highest absolutely for a long time,” Birla said.

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He also pointed to the strong IPO activity seen over the past two to three years. However, he said a significant portion of the capital raised has gone towards the secondary market, benefiting existing investors, rather than funding new investments.

'Foreign investors to return to India'

Birla said domestic investors have a deeper understanding of India than foreign investors, giving the country an advantage as it becomes less dependent on overseas capital.

He said relying more on domestic capital creates deeper liquidity and strengthens India’s financial markets by building a broader base of institutional and retail investors.

Foreign investors, meanwhile, have to consider factors such as valuations, currency movements and geopolitics, he said. Despite these considerations, Birla expects foreign investors to return to India in time.

'Too late for No. 1 spot in telecom biz'
Birla said the group is expanding its 5G network and core capacity after several years of limited funds for capital expenditure.

He said the next step is to raise bank funding for the expansion, adding that the process is progressing well. While he acknowledged that the group is too late to become the No. 1 or No. 2 player in telecom, he said it can build a credible and profitable No. 3 position.

Birla also highlighted the group’s ability to attract and retain top talent as an advantage in the business.