Rahul Bhasin , Managing Partner and Founder of Baring Private Equity Partners , is optimistic about India's growth path , pointing to the nation's strategic strengths and its emergence as a manufacturing hub . According to him, India's geopolitical position big but not menacing provides it with the luxury of being able to gain from global changes without becoming a casualty in the crossfire of global power politics .

Bhasin states that while not every Indian state has joined national manufacturing aspirations, the advances in the most important regions are fueling huge growth. Those taking the lead are already seeing the dividends, and even a few concerted efforts in a small number of regions can make an enormous difference.

He emphasizes that companies focused on technology, cost leadership, and scalability will be the ones to emerge triumphant in India's vastly underpenetrated markets. In his view, while there are worldwide apprehensions regarding tariffs, recession, and other macroeconomic stresses, Indian markets are doing well. He urges us to look beyond the headlines and pay attention to fundamentals. More houses, more consumption, and an increasing requirement for day-to-day products are unavoidable in India in the next five to ten years. These underlying drivers of demand make India a good investment destination.

Bhasin describes how Baring's diversified portfolio has not been affected significantly by tariffs or by geopolitical disruptions. Rather, declining commodity prices have even given margin relief to some companies. He feels that as global trade tensions and geopolitical dangers make headline news, the actual disruptors i.e., technology shifts and long-term productivity improvements need more scrutiny. He sees tariffs mainly as temporary tools of negotiation, not as central threats to patterns of world trade.

In relation to India-U.S. ties, Bhasin says the two nations both have a strength in the form of services exports, and from this mutual concern, they sit on roughly the same side during trade talks. He does recognize some near-term risks for India's IT industry from uncertainties of the American economy and constraints on discretionary spending. Still, Bhasin is bullish on long-term prospects. He does visualize a possibility of near-term disruption in case the U.S. goes into a cyclical recession, but is convinced that long-term structural gains in productivity, particularly through AI adoption, will easily outweigh short-term volatility.

Discussing the hype surrounding technology for AI and electric vehicles (EVs), Bhasin describes hype cycles as a natural phenomenon in technology adoption. Although valuations for AI today appear to be exaggerated, this stage brings in money and builds overcapacity, which eventually lowers marginal costs and triggers real-world applications in the long run. He anticipates a correction in AI investments but is positive about its long-term transformational effect on industries. As far as EVs are concerned, he is sure that cost economics will render EVs more attractive than internal combustion engines. In spite of worries regarding Chinese dominance of the supply chain, he is confident that geopolitics will not be able to prevent the inevitable uptake of better, cheaper technologies.

When questioned on new investment themes, Bhasin refers to India's manufacturing industry. He cites the success of PG Electroplast, which emerged as the largest air conditioner producer in India in four years. These examples, he observes, indicate the huge opportunity in areas where technology, scale, and cost leadership intersect. With India's consumer base still underpenetrated by so many categories, he asks investors to target segments where productivity and efficiency can be unleashed either through automation, 3D printing, or better construction techniques. The convergence of policy encouragement, forward thinking, and international opportunity, he thinks, sets India on a breakout stage
in industrial expansion.