India Set to Become the third Largest Economy by 2027, said Jefferies Group

Jefferies Group, a well-known investment banking company, recently commented on India’s marvellous growth and predicted that India will become the world’s third-largest economy by 2027. For the last 10–20 years, India’s growth rate has been 10–12 % per cent USD CAGR, and currently, India is the world’s fifth-largest economy. Jefferies Group states India’s market capitalisation will touch $10 trillion in the upcoming 6 years.

After COVID-19, India saw a high amount of foreign direct investment in the stock market of India, where companies were wrapping up all their manufacturing and assembling units in China. India saw an opportunity to grab all these units and help companies set up their plants in India.

The Jefferies Group also published the growth rate of India over the last 10 years. India saw constant growth of more than 7%, making it the 5th largest economy in the world and also the fastest-growing large economy.

Chris Wood, Global Head of Equity Strategy at Jefferies, further added the government of India’s reforms for macros and their approach towards helping India grow this fatter. Earlier governments didn’t use to focus on this, and that’s why India always lacked foreign investment.

The Modi government unlocked India’s full potential; now India uses India’s physical potential and geographic advantage perfectly, which is another factor that is helping India’s GDP grow faster.

As per Chris Wood, the government of India has three achievements: the massive investment in infrastructure, which is shaping the bright future of India; the new insolvency and bankruptcy act, which is helping Indian promoters a lot; and finally, the Real Estate Regulation and Development Act of 2016.