India to become 3rd largest economy by 2027, market cap to hit $10 trn by 2030: Jefferies

livemint.com:

Supportive global geopolitics: As per the brokerage India has a vibrant democracy with 57 national/regional parties. The upcoming national elections in Apr/May’24 will have 1bn eligible voters. Successive governments have adopted consistent growth & external relations policies.

India has excellent relations with the Western world, Japan, Australia and the Middle East making it a key beneficiary of China+1, it said. Rising entrepreneurship/vibrant start-up ecosystem driving innovation: 10 years of investment downcycle and risk aversion trend has now inverted with housing upcycle and corporate D/E (debt-to-equity) ratio at an all-time low, informed Jefferies. India is home to 111 unicorns (market value at $350 billion) making it the 3rd largest unicorn hub globally after US and China.

Govt’s focus on developing digital infrastructure, globally the cheapest data rates and the abundant homegrown talent pool have been the key drivers, it noted. India now becoming a services exports hub: The brokerage pointed out that services export (incl remittances) now accounts for nearly $450 billion per year. Several large global organizations have 10-20 percent of their employees based in India including cos like JP Morgan, Intel, NTT, etc.

Superior digital infra, and young & well-educated human resources should drive this segment to keep growing. Strong corporate culture and a history of strong market returns: Jefferies informed that the RoE-focused corporate sector is a key positive for minority investors. The listed equity market is among the most diversified emerging markets.