India sees $8 trillion investment in last decade, accounting for over half of total since 1947: Report

India spent $14 trillion on investments since its Independence, over half of it spent in last 10 yrs

India’s economic landscape has experienced a remarkable transformation, with an impressive $8 trillion of the total $14 trillion invested in the country since its independence being infused in the last ten years, according to a new report by financial services leader Motilal Oswal.

This surge in investment accounts for more than half of the total capital that has flowed into India since 1947, signaling a period of unprecedented growth.

The report further projects that this momentum will continue, with an additional $8 trillion expected to be invested over the next five years. This rapid investment growth is being fueled by post-COVID recovery efforts, large-scale government infrastructure initiatives, and an overall rise in economic activity.

One of the key highlights of the report is the recovery of India’s investment-to-GDP ratio, which has been relatively low since 2011.

However, as the nation rebounds from the pandemic and focuses on infrastructure development, this ratio is showing a marked improvement, contributing to India’s ongoing shift towards sustained economic growth and greater global competitiveness.

India’s stock market has been another critical component in the country’s economic success, consistently delivering positive returns in 26 out of the past 33 years despite periodic downturns.

The report emphasized that investors should anticipate a 10–20% temporary market drawdown each year but advised maintaining a long-term perspective to benefit from eventual market recoveries.

With this strong investment momentum and resilient stock market performance, India is poised to strengthen its position as a leading global economic force.

As the nation continues to build its investment base and improve its GDP ratio, it is on track for continued growth and a more prominent role in the global economy.

The report also pointed out that government reforms and a thriving tech sector back India’s emergence as a major investment destination. Five years ago, India’s share on the Emerging Market index was 9%. Today, it stands at over 20%, reflecting the growing confidence of global investors in the Indian economy.

The anticipated inclusion of Indian government bonds into the J.P. Morgan Global Bond Index-Emerging Markets indices in June 2024 and the country’s upcoming inclusion in FTSE Russell’s Emerging Market government bond index in September 2025 are expected to drive even more capital inflow into India.

This further solidifies India’s position as a key player in the global financial landscape.

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