“India’s economic growth in the next 10 years could be huge,” Watsa said, pointing to India’s expanding network of free trade agreements and opportunities in export-oriented manufacturing.
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Watsa also praised Prime Minister Narendra Modi’s focus on economic growth, saying he had met him one-on-one around 10-12 times since 2014.
“I’m just impressed with the focus that he has on Indian economic growth. That’s all we talk about,” Watsa said, adding that India was “blessed to have Mr Modi” and that significant investment and economic opportunities were being created because of him.
“No one is perfect but Mr Modi’s vision and what he’s done for the country is unbelievable. I thought it could never be done. With one billion people, how do you work in a democracy? And he’s done it,” the billionaire said.
“I see companies from all over the world locating in India,” Watsa said, dismissing concerns over political instability and describing Modi’s role as “very important” in maintaining foreign investor confidence.
“I’m very high on India… India’s going to be one fantastic market,” he added.
Watsa’s bullish outlook comes as the Cabinet Committee on Economic Affairs (CCEA) approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings’ parent entity, Canada Inc., for ₹52,878.08 crore.
The transaction involves the sale of the government’s 30.48% stake and Life Insurance Corporation of India’s (LIC) 30.24% holding. Following the transaction, the government will retain 15% in the lender, while LIC will continue to hold 19%.
The winning bid of ₹81 per share exceeded the benchmark fair value of ₹75.99 determined by two independent valuation agencies. The government described the transaction as the biggest strategic disinvestment since Air India’s sale and said its completion would mark the largest foreign direct investment in India’s financial sector to date.
The deal followed a two-stage competitive bidding process launched in October 2022. The successful bidder must still undergo the Reserve Bank of India’s Fit and Proper Assessment and submit a roadmap for meeting applicable regulatory conditions.