Highest Growth Among Large Economies
7%
FY26 GDP Growth Forecast
Source: UBS
Hot-button India debates for global investors
India is not an innovation economy.
Yes
not in the conventional sense of pioneering deeptech innovation…
But
India has shown innovation in commercializing technologies at scale, driving attractive returns across cycles.
INR devaluation erodes returns.
Yes
The rupee has depreciated to record lows…
But
India’s currency-adjusted returns over the last decade have been robust.
India’s GDP growth is the highest among large economies.
Yes
India continues to be one of the world’s fastest-growing large economies…
But
the real driver of outperformance is corporates with high ROE and earnings growth, not GDP.
India’s economy is powered by domestic demand.
Yes
60% of GDP growth is driven by domestic demand, insulating it from global trade disruption…
But
job quality and income dispersion could determine which companies actually benefit from increased consumption.
The Macro India Story
Domestic Consumption Buoys the Economy
60%
Contribution of domestic
consumption to GDP
Source: World Bank, Avendus Spark Research
Investment Growth Outpaces Most Global Peers
$1 tn
Gross Fixed Capital Formation Investment in 2024 alone, second only to China and the U.S.
Source: Bloomberg
High ROE Companies With Healthy Earnings Growth
28%
of companies with >20% 10-year average ROE, second only to the US
Source: Bloomberg, DSP
Capital Markets Have Deepened
12%
CAGR in the number of billion-dollar companies in 20 years* (market cap)
*Mar ‘04-Mar ‘25Source: Bloomberg, DSPDomestic Consumption Buoys the Economy
60%
Contribution of domestic
consumption to GDP
Source: World Bank, Avendus Spark ResearchInvestment Growth Outpaces Most Global Peers
$1 tn
Gross Fixed Capital Formation Investment in 2024 alone, second only to China and the U.S.
Source: BloombergHigh ROE Companies With Healthy Earnings Growth
28%
of companies with >20% 10-year average ROE, second only to the US
Source: Bloomberg, DSPCapital Markets Have Deepened
12%
CAGR in the number of billion-dollar companies in 20 years* (market cap)
*Mar ‘04-Mar ‘25Source: Bloomberg, DSP
Dig Deeper With Our India Macro Deck
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