Nouriel Roubini: India Is a Major Success Story

Economist Nouriel Roubini, the New York University professor nicknamed "Dr Doom" after warning of the 2008 global financial crisis well before it erupted, has delivered an unexpectedly upbeat verdict on India, calling the country a "major success story" with the potential to become an even bigger one. In an interview with The Economic Times, Nouriel Roubini said the coming decades could belong to India in much the same way that the past few decades belonged to China, a forecast that carries unusual weight from a forecaster better known for spotting financial disasters than tailwinds. "Markets will force the US to adopt a more constructive approach, including towards India," Roubini told the newspaper, predicting that American tariffs would ease further from the current level of 9 per cent as inflation and affordability pressures weigh on Washington's policymakers. "India is a huge and rising economy and is aligned with many of the objectives of the US and the West… Rationality will prevail," he said, arguing that markets would ultimately push the United States to act constructively. ## Nouriel Roubini on US Tariffs and the Trade Reset The remarks arrive at a sensitive moment for trade between the world's two largest democracies. Nouriel Roubini argued that Washington needs to recognise that maintaining good relations with India, including on trade, is critical and fundamental to the West's strategic interests. He expects easing US tariffs, deeper trade ties, friendshoring and continued economic reforms to strengthen the India economy story in the years ahead. With US tariffs having become a flashpoint in bilateral ties, Roubini's view is that economic logic will ultimately override political friction, and that affordability concerns among American consumers will force a rethink in Washington. ## Why Nouriel Roubini Sees India as the Next China The economist's long-term optimism is rooted in a structural reordering of global supply chains. As multinational manufacturers diversify production beyond China, India is positioned to capture a growing share of that investment through friendshoring — the relocation of factories and supply chains to friendly nations. Nouriel Roubini pointed to India's vast domestic market, youthful demographics and steadily improving infrastructure as the pillars of the India economy's next growth phase. The Dr Doom moniker, earned when he warned of the subprime mortgage collapse in a 2006 speech to the International Monetary Fund while much of Wall Street remained optimistic, gives his bullish call on India an unusual credibility. ## The 9 Per Cent Growth Challenge, According to Nouriel Roubini Still, Roubini's forecast comes with a stern caveat. He argued that India must accelerate growth towards 9 per cent to generate enough jobs for its young workforce, even as artificial intelligence reshapes employment across industries and services. Sustaining that pace, he suggested, will demand deeper economic reforms, stronger private investment and policies that help Indian industry absorb the shock of automation while creating new avenues of work. For policymakers in New Delhi, the message from the man once widely known as Dr Doom is clear: the opportunity is historic, but it will not be seized by default. Continued reforms, openness to trade and a steady hand on macroeconomic management will decide whether the coming decades truly belong to India. Roubini, an economics professor at New York University's Stern School of Business and chairman of Roubini Macro Associates, has spent decades advising investors and policymakers on global macroeconomic risk. Though markets dubbed him with the gloomy nickname, Nouriel Roubini has often described himself as a realist rather than a pessimist — a posture that makes his bullish turn on India all the more striking for investors parsing the interview. Roubini's intervention adds to a growing chorus of global investors betting on the country's long-term story, even as near-term debates rage over valuations, tariffs and the pace of reform.