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Transitioning to India’s next stage of growth

1 September 2023

Rana Gupta, Senior Portfolio Manager

Koushik Pal, Director, India Equities Research

India’s growth agenda is already paying dividends via the drivers of formalisation and digitisation that catalysed reinvestment in manufacturing. The result: the country’s macro economy has become more resilient with increased capital expenditure and industrial order books, as well as a narrowing current-account deficit and a healthier inflationary picture.

In a new thought leadership paper, Rana Gupta, Senior Portfolio Manager, and Koushik Pal, Director, India Equities Research, offer an in-depth look at how the current economic foundation, based on key government reforms, has enabled the Indian economy’s next compelling stage. The paper further introduces the new drivers of growth, classified as the 5Ds: Digitisation, Deglobalisation, Decarbonisation, Demography and Deficit Reduction. They are poised to reshape the country’s commercial environment across diverse sectors, and we believe they should represent a paradigm shift for the Indian economy and how investors view it.

Given the current market environment, the paper highlights how Indian equities may participate in the country’s long-term growth story amid policy continuity and a stable regulatory environment. Overall, we think the asset class potentially presents sustainable growth opportunities at an uncertain time when the global growth outlook and corporate earnings environment remain unsettled.

 

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