Will India become the world’s largest economy by 2075? Here’s what financial experts say

India's economic trajectory is marked by unprecedented growth, with experts foreseeing significant milestones on the horizon. Avinash Kansal, Head of Capital Markets & Custody at ICICI Bank, highlights India’s phenomenal growth, asserting its trajectory towards becoming the third-largest economy globally. With India poised to grow, Kansal attributes this growth to factors such as increased productivity, digital disruption and a burgeoning working-class population.

While sharing his views at Anmi’s 13th International Convention 2024, Kansal said that India’s growth is phenomenal. “Becoming the third-largest economy is just a matter of time for India. India is now globally recognised. The money India will get in the bond market will be humongous in the next 2-3 years. We are likely to become the second largest in the next 25 years,” Kansal said.

On the other hand, Ashok Kumar Agarwal, Chairman and Promoter, Globe Capital Markets underscores India’s potential to become the world’s leading economy within the next 50 years. “Indian market has managed to deliver 15% annualised return to investors. The journey for India has started. I am sure we will be a developed economy. We will be the number 1 economy within 50 years,” he said.

Abhisar Jain, CFA, Head and Fund Manager, Monarch AIF sees the rise of alternative investment options in India. He points to the impressive growth of the alternative industry, reaching Rs 10 lakh crore in less than a decade. With regulatory efforts aimed at enhancing Portfolio Management Services (PMS) and Alternative Investment Funds (AIF), Jain predicts an exciting future for these sectors.

“Alternates have already arrived in India in a big way. Sebi is doing its best to improve alternate in PMS space in terms of disruption and management,” he said adding they are constructive on equity markets.

He further added that markets are driven by fundamentals and flow. "Both are at the historically best level. They are structurally improving. The government has also done a lot of job. Sectors like infrastructure including road, energy, power and wealth management businesses will do better,” Jain said.

Ajay Kejriwal, CEO, Choice Equity Broking underlines the growing participation of retail investors, particularly in equity markets. The popularity of systematic investment plans (SIPs) reflects a significant shift towards equity investments, indicating confidence in India's economy. He further added that current valuations of the Indian equity market with stay.

Deepak Kumar Lalla, MD and CEO, SBI Securities advocates for a focus on microeconomic factors while making investment decisions. “We are in a better situation in terms of managing foreign currency, inflation, FDI participation and SIP inflows. Growth momentum is there. Going forward 36% of retail participation will grow further and the supply side will improve. Long-term investment is the right time to make money in India,” Lalla said.

In general, India's economic landscape presents abundant opportunities for investors. With a robust regulatory framework, burgeoning retail investor participation and robust high-frequency indicators, the stage is set for sustained growth.