The Indian economy is projected to be one of the fastest growing economies in the medium term, a recent report by Goldman Sachs revealed. The international brokerage firm, in a recent report, pointed out that after nearly a decade of downward trend, India’s earnings have started showing a stable financial picture in the past few years and are likely to remain the same until 2030.
Additionally, the firm highlighted that with changes in investment cyclicals, sectors like real estate, autos, chemicals along with industrials are likely to witness a surge in profit.
According to the brokerage firm, the earnings of corporates in India have also seen steady growth. A similar growth can be seen in the total earnings and market capitalisation of India’s benchmark Nifty index, as both have attained an 18 per cent CAGR in the last five years. Moreover, consumer cyclicals are likely to see the highest absolute growth.
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The firm is quite optimistic about 20 Indian companies and has recommended a ‘buy’ rating on their stocks: Reliance Industries, L&T, NTPC, M&M, Ultratech, Power Grid, Adani Ports, IndiGo, Eicher Motors, Havells, Polycab, Ashok Leyland, Phoenix Mills, Uno Minda, Hitachi Energy, Astral, Embassy REIT, Kajaria Ceramics, Blue Dart and Amber Enterprises.
In addition, the financial services company Moody’s Ratings has revised its earlier prediction for India in calendar year 2024 from 6.8 per cent to 7.1 per cent growth.
Recently, the World Bank too revised its predictions for India’s GDP growth for the financial year 2024-25 from 6.6 per cent to 7 per cent and has highlighted that government spending on infrastructure, an increase in investments in real estate, mounting private consumption and improved agricultural output.
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Moreover, JP Morgan Chase CEO Jamie Dimon, in his recent visit to India for JP Morgan’s annual investor summit, said it is possible for India to become a $7 trillion economy by 2030. Citing the example of growth achieved by his investment bank in India, Dimon highlighted the growth prospects for the country.
“...I first visited India in 2005 and went to a small building in the old financial district. And I think we did research on 15 or 20 companies. Today, we do research on close to 140 companies, which helps educate the world about Indian companies. We bank 850 multinationals here. We’ve got close to 55,000 employees in the corporate centre supporting our global operations and our technology,” Dimon told the Economics Times.
The American investment bank’s CEO said that with improved digital and physical infrastructure in India, including the Aadhaar system, GST reforms, easing regulations, etc., is attracting multinational companies under the strong leadership of Prime Minister Narendra Modi.
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