India On Brink Of Witnessing Unparalled Wealth Creation, GDP To Reach $20 Trillion By 2047: Jayant Sinha

India is in favourable conditions to register unparalleled wealth creation in years to come. Jayant Sinha, a member of Parliament, believes India's GDP could reach a whopping #20 trillion mark by 2047. He also believes that the listed securities market cap is on the path to unprecedented growth.

Sinha, the Chairperson of the standing committee on Finance, Parliament of India, at the Morningstar Investment Conference scheduled in Mumbai, said, "In navigating the next decade or two, the convergence of mega-trends like climate change, geopolitical shifts, and supply chain dynamics becomes pivotal for investors and advisors."

He explained that recognising climate change as a primary catalyst for economic success or peril, we've embarked on a journey towards a green frontier economy rooted in digitisation and decarbonisation. The intersection of digitisation, epitomized by UPI and India stack, with decarbonisation through renewables, electric vehicles, green hydrogen, and biofuels, defines India's progressive model.

Further, he said, "Net zero isn't just a response to a crisis; it's a net positive for GDP, job creation, and our planet."

Amid global conflicts, Sinha pointed out that India emerges as a safe haven, leveraging its demographic dividend, robust economy, democratic stability, and competitive federal structure. In the realm of trade wars, our 'China plus one' strategy positions us strategically, attracting significant investments in critical technologies. Adding he said, "As we manufacture the iPhone 15 alongside China and boast a digital infrastructure envy of the world, India stands at the forefront of global economic evolution."

He also gave an example of the Bengaluru terminal 2 for the green frontier development model.

He said, "The Bengaluru Terminal 2 is the perfect example of our Green Frontier Development model, amalgamating digitisation with DigiYatra and decarbonisation with its extensive natural environment design."

Thereby, as per Sinha, these factors are empowering Indians to forge the future. As India's GDP embarks on a trajectory of doubling, reaching from 2 to 4 trillion, and eventually targeting 15 to 20 trillion by 2047, the financial landscape mirrors this upward momentum.

He added, "The law of large numbers dictates that the listed securities market cap, historically aligned with GDP, will witness unprecedented growth. With a projected increase of $12 trillion in market cap over the next two decades, we're on the brink of witnessing unparalleled wealth creation. The past decades were just a prelude; the real crescendo of wealth generation in India is on the horizon."

Currently, India's gross domestic product (GDP) grew to 7.8% in the first quarter of FY24, marking the fastest annual pace in a year. RBI has predicted real GDP growth to be at 6.5% for FY24, with Q2 growth at 6.5%, Q3 at 6%, and Q4 at 5.7%, with risks evenly balanced. While the central bank predicts real GDP growth for Q1:2024-25 at 6.6%.

India is currently the fifth largest economy in the world with a GDP of $3.730 trillion, as per Forbes.

Meanwhile, as of October 31st, 2023 in FY24, the market cap of BSE-listed companies stood at over Rs 311.45 lakh crore, which is higher by Rs 53.25 lakh crore from a market cap of over Rs 258.19 lakh crore in the overall financial year FY23. Not just that, the m-cap of these BSE-listed firms has skyrocketed by an eye-bulging Rs 216.70 lakh crore from the m-cap of Rs 94.75 lakh crore seen in the financial year 2016-17.