Blackstone CEO Optimistic About U.S. Tariff Changes
MUMBAI: Stephen Schwarzman, Chairman and CEO of Blackstone, expressed optimism regarding the new tariff regime in the United States, suggesting it could stimulate growth and enhance American consumer demand. During his visit to India, he noted that while it is early to predict the full impact, an increase in U.S. manufacturing activity could benefit both the U.S. economy and global markets.
Potential Growth from Tariff Changes
Schwarzman highlighted the potential for the new tariff policies to significantly boost U.S. manufacturing. He stated, “If that happens, given the size of the U.S. economy, it would likely benefit the world.” He emphasized that a faster-growing U.S. economy could lead to higher consumption levels, although he acknowledged that this is just one possible outcome. The goal of the U.S. is to establish a tariff code with major trading partners, allowing trade balances to be determined by product quality and pricing.
India’s Position in Tariff Negotiations
According to Schwarzman, India is well-positioned in ongoing tariff discussions. He noted that India has already made several adjustments, which could facilitate smoother negotiations. “Very few countries in the world have had that treatment,” he remarked, indicating that India’s situation is favorable compared to other nations with larger trade imbalances. He also pointed out that concerns in India stem from uncertainty, but he remains hopeful about the outcome of the negotiations.
Blackstone’s Commitment to India
Blackstone, which manages over $1 trillion in assets globally, aims to double its investment in India to $100 billion. As the largest foreign company and private equity firm in India, Blackstone is keen on expanding its footprint in the country. Schwarzman emphasized the need for increased infrastructure investment and improved project completion rates. He acknowledged that coordination between central and state governments poses challenges for foreign investors, who often find the approval process complex.
Long-Term Outlook for India’s Economy
Despite recent market corrections, Schwarzman remains confident in India’s economic trajectory. He noted that while some analysts believe the market was overvalued, the long-term growth rates in India have been among the highest globally. He stated, “I don’t see anything that will change that in the near to intermediate term.” Schwarzman concluded that India’s growth is sustainable, especially compared to other fast-growing economies facing severe debt or real estate crises.
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