India emerged as a global leader during FY2021-22 period, while other major economies struggled. The government’s proactive economic initiatives have led to a robust recovery, spurring growth across various sectors. Industries that didn’t exist a decade ago are flourishing, creating exciting investment opportunities for the future, said Amit Gupta, principal officer and fund manager of ICICI Securities PMS during one of the sessions at Outlook Money 40after40 retirement Expo in Pragati Maidan, New Delhi, on Friday.
Here are the edited excerpts of Gupta:
Volatility And Strategic Investment
Geopolitical tensions have contributed to market fluctuations, but strategic investment in key sectors can generate substantial wealth over time. Foreign Institutional Investors (FIIs), traditionally major players during market peaks, have reduced their stake in Indian equities from 21 per cent to about 15.5 per cent. This underinvestment creates a cushion, and as FIIs return, a significant market boost is expected.
Impact Of Foreign Policy On The Economy
India’s decision to buy discounted oil from Russia after the Ukraine crisis has saved the country between $12 billion and $25 billion. These savings, equivalent to the cost of major government schemes, have allowed for increased domestic investment. International investors are also taking notice—Singapore has doubled its stake in India, while US pension funds are now targeting India’s stable market for better returns.
Stable Bond Yields And Fiscal Management
Despite heavy borrowing by the government, bond yields have remained stable due to the savings from oil imports and improved GST and tax compliance. India’s inclusion in JP Morgan’s global bond index is expected to bring in substantial investments, ranging from Rs 40,000 to Rs 50,000 crore annually. This financial inflow solidifies India as a prime destination for foreign capital.
What is more? Temasek, Singapore’s State Fund, plans to invest $3 billion in India over the next 10 years, bringing India’s contribution from three to six per cent.
Manufacturing Growth And Economic Expansion
India is also poised to play a key role in global manufacturing, particularly iPhone production. By 2037, half of the world’s iPhones will be made in India. In fact, Apple will create six lakh jobs in India by manufacturing iPhones.
As local suppliers and small and medium enterprises (SMEs) receive more original equipment manufacturer (OEM) orders, the manufacturing sector will strengthen, contributing to the overall economy. With the rapid growth of electric vehicle production and power capacity expansion, India is laying the groundwork for sustainable, long-term economic growth.
