NEW DELHI: India is poised to rise among emerging markets in this decade, driven by remarkable expansion in direct and fixed asset investment, Capital Group said in a recent report.
The country has had political stability over the last 10 years allowing economic development to be a top priority.
“While political instability and market volatility may increase in advance of general elections next year, we believe that India is poised for a period of secular growth, fueled by significant expansion in direct and fixed asset investment,” Capital Group said.
The report has listed several key aspects that make India appealing compared with other emerging markets.
Those aspects include reforms measures taken under Prime Minister Narendra Modi‘s government such as Aadhaar, Goods and Services Tax (GST), Unified Payment Interface (UPI) and Production-linked incentive programs, Capital Group, the biggest money managers in the world, said.
These reforms have helped bolster Indian stocks.
Apart from reform measure several factors make India appealing are — infrastructure boom, strong tailwinds for manufacturing, the country’s growing capital market, investment opportunities in sectors like real estate, financials and industrials, scope in the chemical industry, and demographics, it added.
Manufacturing capacity is expanding for mobile phones, home appliances, computers, and telecommunications equipment.
“We anticipate India will become a desirable location for companies looking to diversify their supply chains outside of China, a strategy commonly known as China plus one. That said, it likely has many years to go before it can challenge China as a global manufacturing powerhouse. On the flip side, the upside looks promising, ” Capital Group, which manages $2.2 trillion, said.
With regard to equity market, top analysts of Capital Group said that India’s capital markets have seen a proliferation of initial public offerings (IPOs) in recent years. The types of companies going public — and those in the IPO pipeline — reflect its ongoing transformation.
Market experts believe that “secular growth” happens when there is a fundamental change or essential shift in an industry or sector leading to substantial growth.
India is now behind only the US and China in terms of the number of unicorns — unlisted companies valued at $1 billion– as of December 2022.
Capital Group believe this could be a decade to shine for India.
The country has had political stability over the last 10 years allowing economic development to be a top priority.
“While political instability and market volatility may increase in advance of general elections next year, we believe that India is poised for a period of secular growth, fueled by significant expansion in direct and fixed asset investment,” Capital Group said.
The report has listed several key aspects that make India appealing compared with other emerging markets.
Those aspects include reforms measures taken under Prime Minister Narendra Modi‘s government such as Aadhaar, Goods and Services Tax (GST), Unified Payment Interface (UPI) and Production-linked incentive programs, Capital Group, the biggest money managers in the world, said.
These reforms have helped bolster Indian stocks.
Apart from reform measure several factors make India appealing are — infrastructure boom, strong tailwinds for manufacturing, the country’s growing capital market, investment opportunities in sectors like real estate, financials and industrials, scope in the chemical industry, and demographics, it added.
Manufacturing capacity is expanding for mobile phones, home appliances, computers, and telecommunications equipment.
“We anticipate India will become a desirable location for companies looking to diversify their supply chains outside of China, a strategy commonly known as China plus one. That said, it likely has many years to go before it can challenge China as a global manufacturing powerhouse. On the flip side, the upside looks promising, ” Capital Group, which manages $2.2 trillion, said.
With regard to equity market, top analysts of Capital Group said that India’s capital markets have seen a proliferation of initial public offerings (IPOs) in recent years. The types of companies going public — and those in the IPO pipeline — reflect its ongoing transformation.
Market experts believe that “secular growth” happens when there is a fundamental change or essential shift in an industry or sector leading to substantial growth.
India is now behind only the US and China in terms of the number of unicorns — unlisted companies valued at $1 billion– as of December 2022.
Capital Group believe this could be a decade to shine for India.
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