India to account for 12% of global m-cap by 2075; GDP to surpass US

According to Goldman Sachs, the Indian economy and market would be among the best in the world by 2050 and may possibly exceed the US by 2075.

The US-based investment bank stated in a research titled “The Path to 2075-Capital Market Size and Opportunity” that growth in Emerging Markets (EM) will continue to outstrip that in the developed market (DM), with 7 of the top 10 world economies becoming EMs by 2075.

"We expect EM growth to continue to outpace DM growth over the rest of this decade (3.8% versus 1.8%). According to our projections, China, the United States, India, Indonesia, and Germany will be the world's five largest economies in 2050.

Chief economist and head-Global Investment Research at Goldman Sachs, Mr. Jan Hatzius, said that “By 2075, China, the US, and India are likely to remain the three largest economies and, with the right policies and institutions, seven of the world’s top ten economies are projected to be Ems”. EMs and the Indian capital markets are anticipated to gain prominence over the next decades as a result of better economic expansion.

He added, “Our projections imply that EMs’ share of global equity market capitalisation will rise from around 27% to 35% in 2030, 47% in 2050, and 55% in 2075. We expect India to record the largest increase in global market cap share–from a little under 3% in 2022 to 8% in 2050, and 12% in 2075–reflecting a favourable demographic outlook and rapid GDP per capita growth.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.