Pantomath Financial Services Group, a leading financial services group, in collaboration with Investmentz.com by Asit C Mehta Investment Intermediates Limited, has released a report stating that India is the fastest-growing large economy globally in the period of CY2023 to CY2024. The report sheds light on key sectors driving this growth and the transformative policy reforms that have shaped the economic landscape.
Key Highlights:
– Indian Equity Performance: Indian equity has emerged as one of the best-performing markets globally in the last two years. The market cap has surged by 26% in the current calendar year, reaching an impressive $4.2 trillion. In 2023 alone, India added $900 billion in market cap, equivalent to the entire market cap of countries like Brazil, Sweden, and the Netherlands.
-Decarbonization Initiatives: India has intensified its decarbonization initiatives, especially in the renewable energy sector. The country aims to achieve 500GW of renewable capacity by 2030. The green industry is expected to add 3.7 million jobs by FY 2024-25, with a focus on skills related to renewable energy, environmental health safety, solar energy, corporate social responsibility, and sustainability.
Pantomath Report
-Priority Sectors: Agriculture, Railway, Automobile, Defence, Telecom, Infrastructure, Capital Goods, Renewable Energy, Electronics Manufacturing Services (EMS), and Real Estate have become priority sectors. The government has implemented key policy reforms to support growth in these areas.
-Investment-led Growth in 2024: Emerging industries poised for investment-led growth in 2024 include battery energy storage solutions, green hydrogen, biotechnology, AVGC (animation, visual effects, gaming, comics), and semiconductor chip manufacturing, assembly, and design.
-Renewable Energy Progress: Around US$ 2.8 trillion has been invested in the energy sector in 2023, with a significant focus on clean and sustainable energy sources. Solar and wind power installations have surged, and policy measures support the transition to a greener energy landscape.
-Electronic Manufacturing Services (EMS): The electronic manufacturing sector has attracted significant investments, with Production-Linked Incentive (PLI) schemes leading to a total production of US$ 33.55 billion. India aims to become a global electronics manufacturing hub.
-Real Estate Revival: The real estate sector is experiencing a revival, driven by time correction in prices, better affordability, reasonable interest rates, and the need for larger houses. This positive trend has a cascading impact on industries like steel, cement, and building materials.
Global Market and Economy Outlook:
The report also provides insights into the global market and economic outlook. After a sharp correction in global equity markets in CY2022, CY2023 saw a positive trajectory, led by the US market. Notable developments include the rise in US 10-year G-Sec Bond yields, reaching approximately 5%, reflecting anticipation of higher interest rates.
Despite geopolitical tensions and economic uncertainties, global investors remained optimistic, contributing to the upward movement of stock prices. The report suggests that the Federal Reserve’s efforts to combat inflation, coupled with a potential cut in interest rates in CY2024, could lead to a soft landing for the economy.
Indian Economy Outlook for 2024:
The report indicates that the momentum gained in CY2023 positions India for medium- to long-term GDP growth. India is projected to become the third-largest economy by 2030, with a focus on becoming a global manufacturing hub. The robust economic trajectory is supported by resilient growth, favourable demographics, and proactive government policies.
Key industries attracting foreign investors in 2024 include healthcare and insurance, fintech, renewable energy, electric vehicles, IT and services, real estate, infrastructure, FMCG, R&D, tech innovation, and artificial intelligence.
Global IPO Market Update:
The global IPO market witnessed shifts in 2023, with subdued sentiment in developed markets and new hotspot markets emerging. India, Saudi Arabia, and Thailand recorded an increase in the number of IPOs. The report emphasizes that a conducive regulatory environment and policies like the reduced timeline for listing after IPO closure are enhancing the efficiency of IPOs.
Indian Primary Market Update and Outlook for 2024:
India concludes 2023 with optimism, expecting a prosperous 2024. The robust market environment, buoyed by festival demand, is anticipated to continue. The report highlights that India’s primary market trend showcases immense potential, with a surge in IPO activity in recent years. The reduced timeline for listing after IPO closure is seen as a significant regulatory step to enhance IPO efficiency.
In conclusion, the Pantomath report paints a picture of India’s remarkable economic performance, driven by key sectors, policy reforms, and a favourable investment climate. The projections for 2024 suggest continued growth and a dynamic market environment.
