I have been extremely bullish on the medium to long term trajectory of India’s economic growth.
Instead of going into the past, let me share with you some reports – reports from respected organisation that are currently being ignored by the media.
Why? Simple, fear sells much better than anything else.
- As per recent IMF study, India is projected to be the fastest growing economy in the world. Real GDP growth to register CAGR of 7.6% between 2015-25.
- Domestic savings allocation to equities to aggregate close to $250 billion by 2025 (as against $40 bn in the past 10 years), 50% more than what FIIs have invested since 1993.
- As per McKinsey report, India will have 69 metro cities by 2025, housing close to 80% of urban population and contributing close to 80% to urban GDP.
- Market Capitalisation to touch $4 trillion (very conservative estimates) by 2025 (roughly 10% CAGR), given that Corporate India has demonstrated successfully its ability to manage RoE and valuations look reasonable.
- As per the study by TeamLease Services, India can supply 25% of the increase in the global working age population by 2025.
- Size of banking assets in India to reach $30 trillion by 2025 from current levels of $1.5 trillion, a CAGR of 30%.
- As per KPMG study, India’s manufacturing sector, worth $220 billion has the potential of crossing $1 trillion by 2025, with its share to GDP swelling from current 15% levels to 25-30% in 2025. This sector alone is likely to add nearly 100 million jobs.
I think I’ll stop here and ask you a question. I am sorry if my words are harsh, but allow me to ask this.
For how long are you wanting to stay bogged down based on biased news that are targeted to delay your wealth creation journey?
We’ve seen people wait in 2002, and then enter markets when they had already run up.
We’ve seen people exit the markets after the 2008 fall, only to miss out on the run-up in 2009.
Well, the choice at the end of the day would always be yours.