Investor Himanshu Shah: India's Economic Future Hinges on Execution, Not Rhetoric
When discussing India's economic trajectory, few voices are as optimistic and forthright as that of Himanshu Shah. The North Carolina-based investor, speaking at a panel during the Indiaspora Forum 2026 in Bengaluru, emphasized that India's greatest opportunity lies not in lofty promises but in practical execution. Shah, founder of Raleigh-based Shah Capital, argued that beneath the surface of an uneven broader picture, a robust industrial and skills infrastructure is taking shape, signaling immense potential.
Manufacturing and Skills: The Core of India's Promise
Shah pointed to massive manufacturing clusters and government-backed industrial zones as evidence of capacity building. "India is full of ideas. It's the execution of it... that is going to play a bigger role over here," he stated. He highlighted a significant skills improvement underway, crucial because manufacturing has historically been limited in India. This gap, he noted, contributes to India's heavy reliance on Chinese imports, with a trade deficit exceeding $100 billion despite China's fivefold higher per capita income.
However, Shah remains excited about progress, saying, "There is an amazing improvement going on that front... even if it doesn't look great on the surface, but underneath, I'm very excited." The panel, moderated by Indiaspora founder M.R. Rangaswami and featuring Ravneet Mann of Stride Ventures and Sridar Iyengar of 360plus, delved into capital allocation and public policy.
Aggressive Public-Private Partnerships and State-Level Initiatives
Shah advocated for more aggressive government action in seeding future industries through targeted public-private partnerships. He referenced past successes, such as a 2016 billion-dollar fund that spurred over 200,000 startups, and a recent AI and Deep Tech fund. "Frankly, Indian government should be setting up 10 to 20 of that," he urged, listing areas like marine technology, space, drones, machine tools, and material science.
He described these investments as fostering structured collaboration between the state, private capital, and the diaspora. "And bringing that public and private partnership on that, the diaspora can truly contribute, including myself," Shah added. He also noted an "industrial renaissance" at the state level, with Bihar, Uttar Pradesh, Odisha, and Gujarat using land incentives and sector-specific support to attract manufacturing projects.
Opportunities in Import Substitution and Bureaucratic Challenges
To illustrate potential, Shah cited titanium dioxide, used in paints and coatings. India's demand is 400,000 metric tons, but domestic production is only 70,000-80,000 tons, with the rest imported from China. He argued that with free land in supportive states, such projects could become economical. "So, this is just a slip of what is possible in India if the government starts really working for the entrepreneurs instead of being an obstacle," he remarked.
Despite his optimism, Shah acknowledged persistent bureaucratic hurdles. "It is still there," he said, criticizing the need for about 27 forms to open a bank account in 2026. "It is very frustrating... So, there are a lot of things that this country needs to work on. But I see the signs of it."
Role of the Diaspora in Skills and Investment
In closing, Shah emphasized the diaspora's role beyond remittances and philanthropy, focusing on skills transfer. He suggested tapping into retired engineers and professionals abroad to upgrade India's industrial base. "A lot of these people that moved out of India were engineers. And there are a lot of them in their 50s, 60s, and 70s are retired and looking for something to do," he said. "Because this country needs that skill set to make good quality products."
Shah concluded that India's growth depends on connecting capital, skills, and execution, with events like the Indiaspora Forum playing a key role. "And I think an event like this will play a big role in making something happen on that front," he affirmed.
