India has achieved a remarkable milestone in its economic growth journey, with a cumulative investment of $14 trillion since Independence. A recent report by Motilal Oswal highlights that more than half of this amount, $8 trillion, was invested in just the past decade, signaling the country’s rapid modernization and development.
“The country has spent USD 14 trillion on investments since independence, with USD 8 trillion spent in the last decade alone,” the report states.
Future Projections: $8 Trillion in Five YearS
The investment momentum is expected to continue, with projections suggesting another $8 trillion will be injected into the economy over the next five years. This accelerated pace reflects India’s growing commitment to infrastructure development and economic expansion.
Investment-to-GDP Ratio on the Rise
The report also notes the revival of the investment-to-GDP ratio, which had stagnated since 2011. The recovery is attributed to post-COVID measures and increased government spending on infrastructure and developmental projects. “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 added.
Resilient Stock Market Performance
India’s stock markets have demonstrated resilience over the past three decades, recording positive returns in 26 out of 33 years despite interim declines. The report highlights that annual temporary drawdowns of 10–20% are almost a given but are often minor setbacks in the long run.
“10–20 per cent temporary drawdown is almost a given every year,” the report emphasizes, urging investors to maintain a long-term perspective.
A Promising Economic Outlook
India’s robust investment trends, coupled with a resilient stock market, signal a bright future for the nation’s economy. The growing size of annual investments underscores sustained economic growth and enhanced global competitiveness. As India continues to strengthen its investment base, the country is poised to emerge as a significant player in the global economic landscape.
