In the dynamic world of global finance, India stands out as a powerhouse with a remarkable history of 10-12% USD CAGR over the last two decades. Currently, the 5th largest equity market, India’s market cap is poised to touch a staggering US$10 trillion by 2030, making it an attractive destination for investors worldwide. Bolstered by continued reforms, India proudly holds the title of the ‘Fastest Growing Large Economy,’ with domestic flows playing a pivotal role in reducing market volatility. The RoE-focused corporate sector, boasting 167 companies with a market cap exceeding US $5 billion, offers a plethora of investment choices. Projections indicate that India will become the 3rd largest economy by 2027, surpassing Japan and Germany, driven by consistent GDP growth, demographic tailwinds, and improved governance.
The foundation of India’s economic ascent lies in ongoing reforms, such as the transformative GST implementation, bankruptcy reforms, and the Real Estate Regulation Act (RERA), setting the stage for a robust long-term GDP growth of approximately 7%. The ambitious goal of nearly US$10 trillion market cap by 2030 signals a shift in global indices as India’s weight is expected to rise. Supported by a vibrant democracy and excellent global relations, India is strategically positioned to benefit from geopolitical shifts like China+1. The thriving entrepreneurship and start-up ecosystem, coupled with a booming services exports sector, underscore India’s diverse economic prowess. With a history of strong market returns and a sustainable investment culture, India’s listed equity market stands among the most diversified in emerging markets, attracting a steady flow of US$50 billion per year from domestic investors. As India continues to innovate and grow, it emerges as an unignorable force in the global economic landscape, offering unparalleled opportunities for savvy investors.
Source: Jefferies: Equity Research
