US crisis will not affect India: Larry Fink

Larry Fink, Chairman and CEO, BlackRock, which is among the top 10 asset management companies in the world, was in India recently. Between firming up a joint venture with DSP Merrill Lynch Fund Managers, which will be called DSP BlackRock Investment Manager, he met BT’s Mahesh Nayak for a discussion on his company’s plans. Excerpts:

Why are you entering India now?
We have clients all over the world who want to diversify away from their home countries and India gives us the opportunity to service them. Then, our presence in India also gives us the opportunity to bring in newer products into the country in both fixed income and equities through the joint venture.

How much do you plan to invest in India?
We don’t disclose numbers. But we will be spending heavily in technology, branding and, most importantly, on people. While we have controlled our investment elsewhere in the world, we have increased our budget for India, and we will invest a good amount of money on investments in this country.

Are you worried about US slowdown impacting the world financial market?
Yes. I believe that if the US slowdown worsens, it will impact global growth, as I don’t believe in the decoupling theory. Financial markets are co-related. However, India will not be severely impacted because it is primarily a domestically-driven economy.