Jefferies predicts India will become the third-largest economy by 2027 due to GDP growth, geopolitics, and reforms. India’s market cap is expected to hit $10 trillion.
The global brokerage Jefferies expects India will become the world’s third-largest economy by 2027 due to high GDP growth, geopolitical stability, and continuous reforms. India’s GDP grew 7% yearly in USD terms over the past decade, reaching $3.6 trillion and ranking 5th globally. India may surpass $5 trillion in four years, surpassing Japan and Germany to rank third by 2027. Demographical, institutional, and governance reforms in India are driving this rise.
India has the fifth-largest market capitalization at $4.5 trillion, with space for global indices to rise. Jefferies expects India’s market cap to exceed $10 trillion. India benefits from diversification away from China due to its democracy, growth, and worldwide links. Unicorns and investment have increased due to the country’s entrepreneurship and innovation ecosystem, digital infrastructure, and skilled workforce.
Indian services exports, worth approximately $450 billion yearly, demonstrate its worldwide relevance. Strong institutional structures and a return on equity-focused company culture boost investor trust. The country’s sustainable investment habits and rising domestic investor base may support $50 billion in annual equities inflows, preserving high valuations and decreasing market volatility.
Conclusion
Jefferies expects India to become the third-largest economy by 2027 due to GDP growth, geopolitics, and reforms. In the past decade, India’s GDP rose 7% to $3.6 trillion. Country demographics, institutional strength, and governance reforms promote this expansion. India’s market valuation is $4.5 trillion, sixth in the world, and predicted to reach $10 trillion. Global startup hotspot because of its dynamic democracy, strong geopolitical links, and thriving entrepreneurial scene. The services export sector and strong corporate culture boost India’s global economy.