India spent $14 tn on investments since Independence, more than half of it spent in last 10 yrs: Report

India’s economic growth story has witnessed a remarkable surge in investment spending, with over half of the USD 14 trillion invested since Independence being spent in the last decade alone, according to a report by Motilal Oswal.

The report highlighted that USD 8 trillion was poured into the economy in the past 10 years, underlining the country’s rapid expansion and modernization.

“The country has spent USD 14 trillion on investments since independence, with USD 8 trillion spent in the last decade alone” said the report.

The report also noted that this unprecedented acceleration is expected to continue, with projections indicating that India will invest an additional USD 8 trillion in just the next five years.

It also added that the investment-to-GDP ratio, which had stagnated since 2011, is now witnessing a recovery. This revival is attributed to post-COVID recovery measures and increased government expenditure on infrastructure and developmental projects.

The growing size of India’s annual investments reflects a shift towards sustained economic growth and enhanced global competitiveness.

It said “The investment to GDP ratio, which had been low since 2011, is now recovering due to post-COVID recovery efforts and increased government expenditure”.

The report also sheds light on the resilience of India’s stock markets over the past three decades. It stated that out of 33 years, markets ended with positive returns in 26 years, despite experiencing interim declines. Temporary drawdowns of 10-20 per cent have become an almost annual phenomenon, but long-term trends reveal consistent growth.

It said “10-20 per cent Temporary drawdown is almost a given every year”.

While bear markets may seem daunting in the moment, they often turn out to be minor setbacks in hindsight. The report cautions investors against panic selling during downturns, emphasizing the importance of maintaining a long-term perspective to reap the benefits of market recovery.

India’s robust investment momentum, coupled with its resilient stock market, paints a promising picture for the country’s economic future. As the investment base continues to expand, India is poised to emerge as a key player in the global economy.