India's stock market reached a record worth of $3.8 Trillon

Published : 11 September 2023

India hits $3.8 trillion valuation:

The value of the Indian stock market reached a new high of $3.8 trillion.  This achievement neatly aligns with the G-20 summit, giving PM Modi a great opportunity to highlight India's potential as a geopolitical superpower.

PM Modi has adopted a combination of tariffs and incentives to get businesses to produce in India as Western nations seek to curb China's influence. Indian stocks have seen a net inflow of almost $16 billion from foreign investors so far in 2023, which is the highest amount in three years.

PM Modi adopts mixed tariffs and incentives to promote Make in India

Chris Wood, the global head of equities strategy at Jefferies LLC, predicts that over the coming ten years, India will have robust increase in corporate profitability driven by a recovery in private investment and the real estate cycle. India is one of Columbia Threadneedle Investments' greatest stock over weights, according to the company. Additionally, they have optimism for Indian rupee, dollar corporate debt, and local currency government bonds.

Foreign investors think of India as an opportunity

1. Job creation potential: With an economy of this size, thousands of employment in many areas may be generated, providing possibilities to millions of Indians. 2. Infrastructure construction: The influx of funding could result in extensive infrastructure construction around the nation. 3. Economic stability might result from a market this large, enhancing investor confidence and even attracting more foreign investment to India.

How it will impact the economy?