FX.co ★ India’s stock market destined for tenfold growth?

India’s stock market could swell tenfold in mere 20 years, thus turning into an international financial hub. Bearing in mind India’s booming economy, such prospects seem realistic. According to the latest estimates, the trading volume of the domestic stock market has already surpassed $4.6 trillion. More than 6,000 companies willing to attract overseas capital went public at two major stock exchanges in India, CNBC reported, referring to Sujan Hajra, the chief economist at Anand Rathi Share and Stock Brokers, who is bullish about the benchmark stock indices.

Another optimistic expert polled by CNBC believes that India’s stock market has enough bullish momentum to expand to $60 trillion. This ambitious forecast is based on solid fundamentals. The Nifty 50, the benchmark index of the National Stock Exchange, surged by a whopping 20% in 2023, having outpaced Hong Kong’s main stock index. This amazing rally correlates to the 7.2% expansion in the national economic output in the same 2023. So, optimistic experts put forward weighty arguments.

Remarkably, India is eager to assert itself as a high-tech leader of Asia, willing to challenge well-established heavyweight China. New Delhi cherishes a dream to become a kind of Silicon Valley for foreign high-tech giants, for example, Apple Inc. These companies were discouraged by tough economic restrictions imposed by Beijing during the COVID-19 pandemic. While a huge iPhone manufacturing facility in China was suffering losses during COVID lockdowns, India was working out plans to win over overseas investors.

Indeed, India has ambitions to replace China as a more advantageous partner for electronics manufacturers and start-ups. The government is firmly on the path to its goal, enticing foreign capital and pumping up the domestic consumer market. These efforts are likely to bear fruit as India can boast a rapidly developing economy and qualified workforce. Nevertheless, New Delhi has to push harder to take over China’s high-tech leadership in Asia. Who knows? Perhaps India’s successful economy could outpace underperforming China in the not-too-distant future.