Indian assets are poised for growth in investors’ portfolios

Investors’ attention should be turning to India, which has overtaken China as the world’s most populous country. The country has a lot more going for it than just demographics. We expect GDP growth will average 5.2% per year over the next decade, compared with 3.7% for emerging economies, and a modest 1% for developed markets.

Indian assets are poised for growth in investors' portfolios

This year alone, India is projected to contribute up to 15% of global growth, second only to China and more than Europe or the United States. India has all the necessary components to become a key engine for global growth, but must overcome several obstacles before it can unlock its full potential.

Companies’ capital expenditure has stagnated in the past decade, and we believe the need for new investments will drive growth in the next 10 years. There’s scope for this, given corporates have stronger balance sheets and corporate debt-to-GDP fell by 19% in the ten years to mid-2022. Also, banks have strong capital adequacy ratios of around 16%, which makes them better able to withstand risk and absorb losses, and consequently to lend. Indian banks also cleaned their balance sheets, with net non-performing assets accounting for 1.7% of total advances in March 2022 from a peak of 5.6% five years ago.

You can now read the full whitepaper at the link below