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India to spend USD 8 trillion on investments in next five years: Motilal Oswal

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New Delhi | December 20, 2024 9:12:23 AM IST
India is poised to spend a massive USD 8 trillion on investments over the next five years, says a report by Motilal Oswal.

The report highlighted that the country is set to witness a significant resurgence investment landscape, which is regaining momentum after a prolonged period of stagnation.

It said "As the investment base grows, India is expected to spend another USD 8 trillion in the next five years. India's investment landscape is experiencing a resurgence after a period of stagnation".

With the investment-to-GDP ratio recovering after a dip since 2011, the country's economic revival is attributed to post-COVID recovery efforts and increased government spending.

It also noted that since independence, India has spent USD 14 trillion on investments, with USD 8 trillion being spent in the last decade alone. This steady growth underscores India's growing economic potential and its appeal as an investment destination.

However, the report also mentioned that the country's economy is currently navigating through moderated growth, with urban sectors facing slower investments and subdued consumption.

Despite these challenges, the services sector continues to provide stability and remains a key contributor to the economy.

It said "While these challenges have impacted overall GDP growth, the services sector continues to provide a stable foundation"

It also added that the rural consumption, on the other hand, is showing signs of recovery, driven by a healthy monsoon and improved agricultural growth. Positive indicators such as a surge in personal credit growth are adding to the optimism surrounding the rural economy.

The report also emphasized that the government's capital expenditure is expected to pick up significantly in the second half of FY25. This increased spending is likely to stimulate investment growth and support economic recovery in the months ahead.

As India gears up for this massive investment push, the report highlighted the country's growing global attractiveness and its potential to emerge as a major player in the global economic landscape. With sustained efforts and focused policies, the coming years could mark a transformative phase for India's economy. (ANI)

 
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