$8 trillion of the $14 trillion invested in India since 1947 came in the last 10 years
India’s economy has seen unprecedented economic growth with $8 billion in investment over the past decade, comprising more than half of the $14 billion invested in the country since independence, according to a new report.
Finance chief Motilal Oswal also noted that the acceleration is expected to continue, with projections indicating that India will invest an additional $8 billion over the next five years.
It pointed out that the ratio of investment to GDP, which has been low since 2011, is now stabilizing due to efforts to recover from COVID and increased government spending on big-ticket infrastructure projects.
The increase in the size of annual investment in India reflects a shift towards sustainable economic growth and improved global competitiveness.
The report highlighted that India’s stock market has been another pillar of economic strength, delivering positive returns in 26 of the last 33 years despite occasional downturns.
It said that “temporary deductions of 10-20 percent are almost always offered every year.” It also advises investors to avoid panic selling during market downturns, encouraging a long-term view to take advantage of recovery trends.
With strong investment momentum and strong markets, India is on course to strengthen its position as a global economic leader. As the investment base expands and GDP increases, the country is poised for sustainable growth and improved global competitiveness, the report added.
India has become a market you can’t ignore, driven by government reforms and a booming tech industry.
Five years ago, India’s ranking in the Emerging Market index was 9 percent. Now it is more than 20 percent.
The June 2024 inclusion of Indian government bonds in the JP Morgan Global Bond Index-Emerging Markets is the first time and sets the stage for billions more to flow into India.
India’s inclusion in the prestigious FTSE Russell’s Emerging Market bond index in September next year has also been welcomed by the investment community.
