India's Economic Ascent : A Promising Future for Stock Market Growth

Radhika Gupta, the MD and CEO of Edelweiss Mutual Fund, presents an optimistic outlook for India's economic future and its potential impact on the stock market. She highlights that India is on the cusp of becoming a $4-trillion economy by the end of this year, marking a significant milestone in its growth trajectory.

Radhika Gupta - CEO of Edelweiss Mutual Fund

Historical Comparisons

• Gupta draws parallels between India's current economic position and the historical experiences of other major economies:

• United States : When the US GDP doubled, its stock market indices increased approximately 15 times

• Japan : During Japan's period of GDP doubling, its stock market index surged about 20 times

• China : In China's case, the GDP doubling occurred rapidly over just four years, resulting in a 4-5 times increase in its stock market

India's Current Position

• According to Gupta, India's stock market has only increased by 2.5 to 3 times since the country began its journey towards becoming a $5-trillion economy. This relatively modest growth compared to historical examples from other countries suggests significant potential for future market appreciation.

Future for Stock Market Growth

• Gupta expresses confidence in India's economic prospects, stating that this is "an incredible decade for India". She believes that the country's strong GDP growth trajectory bodes well for equity returns in the coming years. The comparison with other major economies and the assertion that "India's story has just begun" implies that there could be substantial room for growth in India's stock market as the economy continues to expand. Future for stock market growth is promising, driven by robust economic expansion and significant potential compared to historical benchmarks.