India’s financial landscape has seen a remarkable growth in investment spending since independence, particularly over the last decade during which more than half of the $14 trillion invested.
A report by Motilal Oswal revealed that in the past 10 years, $8 trillion has been injected into the economy, to assist the country’s rapid expansion and modernization.
“The country has spent $14 trillion on investments since independence, with $ 8 trillion spent in the last decade alone” it said.
It further added that the investment-to-GDP ratio, which had stalled since 2011 is now improving. This recovery is credited to post-COVID economic measures and a surge in government spending on infrastructure and development projects.
This increasing annual investment growth showcases India’s transition for sustained economic growth and enhanced global competitiveness.
It said “The investment to GDP ratio, which had been low since 2011, is now recovering due to post-Covid recovery efforts and increased government expenditure”.
The report also emphasizes on the strength of Indian stock markets over the past 33 years, reflecting positive returns in 26 of those years despite occasional setbacks. It observes that short-term declines of 10-20 percent occur almost every year, yet the markets continue to exhibit long-term growth.
It revealed, “10-20 per cent Temporary drawdown is almost a given every year.”
Even though bear markets can seem overwhelming in the short term, they often appear as minor setbacks when viewed in hindsight. The report also cautions investors against panic selling during market downturns, stressing the importance of keeping a long-term perspective to fully benefit from market recoveries.
India’s strong investment momentum, along with its resilient stock market, offers an optimistic insight for the economic future. With the investment base steadily growing, India is well-positioned to become a major player in the global economy.