New York: According to a forecast by the investment banking firm Jefferies, India is poised to emerge as the world’s third-largest economy by 2027, surpassing both Japan and Germany.
With India’s GDP expected to reach $5 trillion within the next four years and nearly doubling to $10 trillion by 2030, the country’s economic trajectory appears robust.
Jefferies emphasized India’s remarkable economic growth journey, noting its transition from the ninth-largest economy globally a decade ago to its current position as the fifth-largest, boasting a nominal GDP of $3.4 trillion.
Despite encountering challenges stemming from major reforms such as the implementation of GST, bankruptcy laws, and demonetization, India’s GDP has continued to expand steadily.
Chris Wood of Jefferies, as cited in a Hindustan Times report, underscored the profound impact of fundamental structural reforms initiated under Prime Minister Modi’s leadership. He highlighted how these reforms have notably enhanced India’s macroeconomic indicators, rendering the country increasingly appealing to foreign investors.
Previously, India’s lack of a compelling top-down narrative hindered foreign investment; however, recent reforms have elevated the country’s macroeconomic narrative to global standards.
Jefferies forecasts India’s GDP growth to outshine that of most large economies worldwide, with a projected growth rate of 6% over the next five years.
In addition to structural reforms, escalating growth rates are propelling India’s ascent on the global economic stage.
According to NDTV, Jefferies anticipates substantial growth in Indian equity markets, with expected returns of 8-10% in dollar terms over the next five to seven years.
Structural domestic inflows and the potential listing of large unicorns are anticipated to drive the market capitalization beyond $10 trillion by 2030.
Moreover, the company highlights ample room for increased foreign investment in India, given its relatively low country weight in global indices, which presents lucrative opportunities for equity investors.
