A recent report by wealth management firm Equirus has underlined India’s structural economic strengths, stating the country is poised to outpace G7 economies in the coming years. The report suggests that global capital can no longer afford to ignore India’s evolving economic landscape.
According to Equirus, India’s growth is being powered by strong macroeconomic fundamentals, government-led capital expenditure, a revival in rural consumption, and a structural shift in manufacturing. These factors, the report notes, are positioning India favourably amid a globally uncertain economic environment.
Equirus Credence Family Office CEO Mitesh Shah said India is no longer just the fastest-growing economy on paper, but is structurally better placed than most of the G7 nations. He described this as a “seismic shift” in global economic dynamics. Highlighting the shift in global macro trends, Shah pointed out that India is expected to contribute over 15 per cent to global GDP growth between 2025 and 2030, whereas traditional global investment strategies are beginning to falter.
The report outlines how India is benefiting from critical structural trends. These include a significant uptick in rural demand, where FMCG consumption in rural areas grew by 6 per cent, compared to 2.8 per cent in urban regions. In addition, government-led capital expenditure is set to increase by 17.4 per cent, alongside a Rs 2.5 lakh crore liquidity infusion currently underway.
Over the last decade, the monthly per capita expenditure gap between rural and urban households has narrowed from 84 per cent to 70 per cent, further supporting the case for a consumption-led recovery in the Indian economy.
Equirus also questions the continued relevance of the traditional 60/40 portfolio strategy, which divides assets between equities and bonds. In an increasingly fragmented global financial landscape, the report argues, dynamic and geography-spanning asset allocation is not just advisable but essential for both capital preservation and alpha generation.
India’s rising global economic stature is evident in its growing contribution to global GDP growth, which now significantly exceeds that of Japan and Germany. The report also highlights broader global shifts that support India’s rise, including a decline of around 6 per cent in the Dollar Index (DXY) from its 2025 peak and stable crude oil prices near $70 per barrel, both of which help ease India’s import burden.
On the manufacturing front, the report notes the gradual materialisation of the ‘China +1’ strategy. With multinational corporations like Apple moving parts of their iPhone production to India, the country is gaining from favourable cost structures, lower attrition rates, and stronger geopolitical alignment.
India’s post-election economic outlook is also bolstered by a capex push led by both central and state governments. With a 17.4 per cent rise in capital spending and liquidity support via phased CRR cuts, the report sees these developments as a key force behind India’s economic momentum.
-IANS