By Pauline Ng, co-manager of JPMorgan Asia Growth & Income plc (JAGI)
As we approach the festival of Diwali, a time traditionally associated with prosperity and new beginnings, it’s worth reflecting on the outlook for investing in India.
In a complex geopolitical landscape, India shines as one of the world’s fastest-growing economies. The International Monetary Fund (IMF) expects a 6.1% growth rate over the next five years, positioning India as the world’s third-largest economy by 2027, trailing only the United States and China. By 2030, India aims to double its GDP from $3.5 trillion to $7 trillion, driven by urban consumption and capital investments.
Indian equity markets are also thriving, reaching all-time highs this year. Despite some volatility during the general elections, stocks have consistently outperformed their emerging market peers. Since the pandemic low in March 2020, the blue-chip NSE Nifty 50 has surged over 200%, with the total market cap around $5 trillion.
Our top Indian holdings—HDFC Bank, Reliance Industries, and Mahindra & Mahindra—are well positioned to benefit from India’s economic growth, fuelled by digitalisation and urbanisation. While valuations may appear elevated, strong fundamentals support sustained growth, and we’re optimistic about the long-term outlook.
