India is expected to contribute over 15 per cent to incremental global GDP between 2025 and 2030—exceeding the projected shares of Germany and Japan, and even surpassing Bangladesh in relative impact, Equirus said in a report.
Multinational corporations are increasingly moving production to India, attracted by cost efficiencies, lower attrition, and geopolitical alignment. This marks a significant reconfiguration of global supply chains in India’s favour, it said.
“India is no longer the world's fastest-growing economy just on paper—it is structurally better positioned than most G7 nations. That's a seismic shift,” said Mitesh Shah, chief executive officer (CEO) at Equirus Credence Family Office.
The rural-urban monthly per capita expenditure gap has narrowed from 84 per cent to 70 per cent over the last decade, signalling a broader consumption-led recovery.
A post-election surge in public capital expenditure is further boosting India’s economic momentum, with central and state investments expected to rise by 17.4 per cent. The Reserve Bank of India (RBI) has infused ₹2.5 lakh crore (~$30 billion) of liquidity into the system through phased cash reserve ratio (CRR) cuts to support this expansion.
Macroeconomic tailwinds such as a 6 per cent decline in the US Dollar Index (DXY) from its 2025 peak and stable crude oil prices at $70 per barrel are further easing India’s import burden and reinforcing its stability.
The report also challenged the relevance of the traditional 60/40 asset allocation model, especially after the historic losses in 2022 when equities and bonds both plunged. It advocated a globally diversified, forward-looking investment strategy that spans geographies, sectors, and cycles.
With a multi-engine growth model rooted in manufacturing, public investment, and supply chain diversification, India is increasingly viewed as a central force in the shifting global economic landscape, concluded the report.
ALCHEMPro News Desk (SG)
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