India as an Investment Destination- India Growth Story
Inspite of a steep CRASH of 2800 points on stock Market today I feel very strongly India as an Investment Destination- India Growth Story
Inspite of a steep CRASH of 2800 points on stock Market today I feel very strongly India as an Investment Destination- India Growth Story
India is also one of the fastest-growing economies in the world. Along with this, India is considered a talented and ambitious workforce to enhance economic. growth. India’s GDP IS $3.5 TRILLION FOR FY 22-23 ($3.47 Bn per IMF for CY22). Growth has been accelerating in each decade. Impact of agriculture on overall growth is steadily reducing.
Indian Economy is basically domestically driven economy, unlike other emerging markets which are linked to export growth.
Young and Richer India has huge implication in terms of multiplier effect on consumption and Economic growth. Private consumption is fueled by strong growth in Urban areas due to services and outsourcing Industry. Retail lending is also picking up at brisk pace.
We are almost quarter of the way into the 21st Century. What’s driving India’s economy at this check point? A multitude of demographic and economic factors. These. Are already reshaping consumption pattern in big way.
Until recently 2022-23 rich households which constitutes merely 5% of total households have driven nearly one-third of all discretionary spending in India
BUT THIS SCENARIO IS ABOUT TO CHANGE DRAMATICALLY, because per capita income levels are expected to grow by 10% CAGR to about $5,200 in 2031 from $2,400 in 2023.
By 2031 India will add about 75 million middle class (Rs 5 -30 Lakhs annual household income) and 25 million rich households (more than 30 lakhs)
Total share of these segments will be 56%. Their higher per capita income levels will see these households command a higher share of discretionary spends.
Middle class households will drive 53% of total consumption. Rich households will drive another 26% compared to 48% and 17% today.
India’s total GDP OF 3.5Tn consists of 28% from Industry and 53% from Services.
A powerful and impactful forces of improving infrastructure formalization and a robust manufacturing infrastructure policy are aligning and are making India better poised for higher trajectory growth. Today There is a major thrust toward manufacturing, Physical and digital infra projects, and logistics. All these are also reshaping consumption patterns. Driving spends. Creating a higher marginal propensity to consume.
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