There are strong fundamentals behind the optimism of India’s growth story :
- Ever since economic liberalisation in 1991, India has growth by leaps and bounds. Steady reforms, a vibrant democracy, and independent judiciary are ensuring that this is intact.
- India is one of the five largest economies in the world. It is also one of the fastest growing economies in the world with a growth rate that fluctuates around 6-7%.
- Rich universe of high quality companies to invest in. Companies are more efficient, less indebted, and growing faster. It is also easier for them to raise capital. Economic growth is translating into higher earnings-per-share growth.
- The stock market is supported strongly by domestic investors, and the historical annualised stock market returns are in the vicinity of 12%.
- A growing middle class points to increased consumption, which is transforming India’s economic landscape and establishing a broad consumer base for a wide range of goods and services. The younger demographic also points to increased consumption and a large workforce.
- From cutting-edge technology to life-saving drugs and aerospace, India’s industrial ecosystem offers appealing opportunities for multinational companies looking to expand their operations. The services sector, manufacturing, automobiles and construction are traditionally the key sectors driving foreign direct investment in India. However, the IT & ITeS, electric mobility, FinTech, renewable energy and MedTech sectors are rewriting the new chapters in India’s growth story by propelling innovation and attracting investments.
- Strong pool of scientific and technical manpower from such academic institutions as the Indian Institute of Technology (IIT) and the Indian Institute of Management (IIM), a pervasive entrepreneurial spirit, a large English-speaking population, a transparent foreign investment regime, and high quality cost effective manpower make it a strong investment destination.