Jefferies Bullish on India’s Economic Outlook, forecasts 3rd largest economy by 2027 and $10 Trillion market capitalization by 2030

Srinagar : The Global investment advisory firm Jefferies has released a comprehensive report outlining a positive trajectory for India’s economy and equity markets, projecting significant milestones in the coming years. The report, which emphasizes India’s transformative structural reforms, paints a promising picture for the nation’s economic future.
Jefferies predicts that by 2027, India will emerge as the world’s third-largest economy, surpassing economic powerhouses Japan and Germany. The firm attributes this optimistic outlook to the sustained and impactful reforms implemented over the past decade, creating a conducive framework for growth.
In addition to the economic expansion, Jefferies anticipates India’s market capitalization to reach an impressive $10 trillion by 2030. Currently standing at $4.3 trillion, India ranks fifth globally in market capitalization, behind the USA, China, Japan, and Hong Kong. The report highlights India’s consistent outperformance, generating 10% annual returns in dollar terms over the last 5-20 years, outpacing its emerging market peers.
Jefferies underlines the potential for continued growth in Indian markets over the next 5-7 years, driven by a renewed Capital Expenditure cycle and a robust earnings profile. Despite recent geopolitical tensions, the report points out that India has adeptly maintained positive relations with the G7 and actively participates in BRICS, showcasing its diplomatic finesse.
The report also sheds light on the under penetration of Indian markets, with only 4.7% of household savings currently invested in equities. However, digital advancements have blurred the lines between traditional and retail investors, offering unprecedented access to the stock market. With growing awareness of investment opportunities through mutual funds and the popularity of Systematic Investment Plans (SIPs), Jefferies expects a significant inflow of savings into India’s equity markets.
Furthermore, Jefferies suggests that the present environment presents an opportune time for multinational companies with a strong foothold in India to list on Indian stock exchanges. The report cites examples such as Hyundai India’s decision to list its subsidiary and envisions larger global companies like Amazon, Samsung, Apple, and Toyota considering similar moves, potentially transforming India’s equity capital markets.
In conclusion, Jefferies credits the PM Modi government for successful and impactful reforms since 2014, including the landmark GST reform, Bankruptcy Law, and Real Estate Regulatory Act. These measures have created an ecosystem conducive to high growth and economic stability, setting the stage for India’s promising future on the global economic stage. (Courtesy………PIB Srinagar)