A $5t Economy It is a wonderful time for the Indian economy the markets are booming with rising participation from domestic investors, structural reforms like GST, Bankruptcy Code and RERA are transforming.
The economic landscape and cyclical drivers, including corporate earnings are expected to improve significantly going forward India’s large GDP, exceeding $2 trillion, should witness a massive compounding effect.
However, By 2025, India could possibly be a $5 trillion economy , adding $1 trillion every 18 months thereon! It won’t be a surprise to see India challenging the hegemony of countries like USA and China, with a GDP which could touch $20 trillion by 2040 This is truly, India’s Golden Age of Compounding.
Moreover, This structural change is reflected in the numbers. Household savings in shares and debentures are on the rise. Mutual funds have been a favoured avenues to invest in equity this is seen in the number of MF folios which have quadrupled in the last 3 years from 0.3 million to 1.3 million.
Monthly SIP flows are now around Rs 4,500 crore an annual inflow of more than Rs 50,000 crore! Growing awareness in equity markets will have a collateral positive impact on investor interest in.