Noted economist, author and CEO of macroeconomic consultancy firm Roubini Macro Associates, LLC, Nouriel Roubini, is bullish on India as he said among emerging markets, India is a "positive one."
In an interview to CNBC TV-18, Roubini, professor emeritus at the Stern School of Business, said the country's fiscal policy “could be better, it is okay”.
"India's potential growth runs seven per cent, may be higher with economic reforms,” he said, and predicted that India is going to be a rising power in the next few years.
India and a few other emerging markets might be a good place to invest, both for fixed income and equities, he said.
I see the future of India geopolitically being closer to Us and the West, he said, adding that India could benefit from the de-dollarisation—attempts to reduce the dominance of dollar in global markets.
In a recent article in The Guardian, he had said India is set to become the world's most important country in the near team and observed that the country'e economy has "enormous scope for productivity gains."
The economist also said the banking crisis in the US is far from over. “I see more financial institutions in trouble. The recent problems of US banks have come from duration risk. We are going to go from market risk to credit risk in US; and as credit crunch increases, there will be a recession in the US," he said.
If the US Federal Reserve hikes rates, there can be a recession and financial instability in the US, he pointed out.