An Indian growth story

by | Sep 18, 2017

Multinational services firm Deloitte have released a new report, indicating that India is poised to outperform China and other Asian countries as an economic superpower, thanks to its young population. According to Deloitte, India will drive the third great wave of Asia’s growth, with a potential workforce set to climb from 885 million to 1.08 billion people in the next 20 years, and maintain above that for 50 years. India will account for more than half of the increase in Asia’s workforce in the coming decade alone.

This demographic shift may have large implications for businesses, especially considering there is an increased share of women entering the workforce. By extension, India could be one of the best nations on earth to invest in over the next half-century, as population growth rises, interest in equity markets grows and a more educated workforce pushes ahead.

The rise of the middle class is one of the key reasons behind India’s growth story. By 2020, India is projected to be the world’s third largest middle class consumer market behind China and the US. By 2030, India is likely to surpass both countries with consumer spending of nearly $13 trillion.

India has recently received praise from the World Bank. In its latest ‘Ease of Doing Business’ global rankings released October 31st 2017, the WB placed India in the top 100 (up from 130 last year). The institution predicts India could be a high middle-income economy in 30 years, and applauded its extraordinary achievement of quadrupling per capita income over the last 3 decades. WB CEO Kristalina Georgieva said that given India’s track record so far, she is in ‘no doubt’ that extreme poverty in India could be eradicated by 2022 – a date put forward by Prime Minister Narendra Modi

An interesting investment narrative is unfolding in India. Indian equity markets are still on an upward trend, mainly thanks to higher liquidity in the markets from domestic investment. Foreign institutional investors have actually been net sellers of Indian securities in August 2017, with an outflow of around Rs 15,000 crore, however, the domestic interest in equities is growing rapidly, which will help to boost equity markets further. Investors who are bullish on Indian stocks are likely to be proven right.

ALL RIGHTS RESERVED © INVSTR LTD. 2017

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order. Brokerage services, including fractional trading of US securities, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here. Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Download on the App Store           Download on Google Play

ALL RIGHTS RESERVED © INVSTR LTD. 2017

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here
Cryptocurrency trading is provided by Coinbase. To be eligible to use the Coinbase Services you must be at least 18 years old. Your eligibility to access certain Coinbase Services also depends on the country in which you reside. For more information on eligibility of use and disclaimers go to Coinbase, or click here

 

Share This