Vishwamitra Research Foundation

5th largest Economy on track to be the 3rd largest by 2027

Invest in India. Innovation. Growth. Opportunity.

India is set to become the world’s third-largest economy by 2027, driven by controlled inflation, a lower fiscal deficit, and robust GDP growth fueled by government spending and investments. With surging capital expenditure, India is poised to surpass Japan, achieving 6-8% GDP growth over the next five years.

A rising middle class and stronger rural economies are creating major investment opportunities. India’s median age of 28.2 years ensures a large workforce, boosting investments and reducing poverty.

India's Pro-Business Reforms Drive Investment and Economic Growth.

India has introduced major reforms to improve business ease, including regulatory cuts, increased FDI, and reduced bureaucracy. Digitalization and evolving policies attract foreign firms, making India a stable market for investors. Economic transformations like solid bank lending, stock and bond market expansion, private investment growth, and IT advancements, along with bankruptcy laws, have spurred investment and economic activity.

Indian Private credit investments witnessed US$9.2 billion worth of deals in CY 2024 , demonstrating a strong growth of 7%, by value, over CY 2023.The deal count grew by 45% year on year from CY 2022 to reach a new record at 163 deals in CY 2024. The above figures do not include deals less than US$10 million, deals concluded solely by foreign banks and offshore credit raises, which would significantly enhance the size of the market. This continues to demonstrate higher awareness and acceptance of private credit as a source of solution capital.

India Emerges as a Global Tech and Investment Hub, Accelerating Manufacturing Growth

India is a technology hub, excelling in biotech, renewable energy, IT, AI, and startups. Investment confidence is evident in Temasek, Bain Capital, Advent, and KKR, pledging multi-billion-dollar investments. The China+1 strategy further fuels India's advanced manufacturing sector, which grew ~20% CAGR from 2021-2023 due to government initiatives.

India’s Digital Boom Drives Investment Growth

India’s digital economy is thriving, with UPI and OCEN enhancing financial inclusion, while SaaS and tech sectors attract investment in profitable startups. India is also a rising hub for alternative investments, drawing global interest in private credit, infrastructure, and ESG ventures. Private credit markets offer structured financing and distressed asset opportunities, while real estate and infrastructure PE thrive with investments in roads, railways, data centers, and logistics. Sovereign and pension funds like ADIA, GIC, and CPP Investments are boosting allocations, strengthening India’s financial ecosystem. ESG and impact investing are growing, with green bonds, clean energy, and financial inclusion driving demand. Domestic investors’ appetite for REITs, InvITs, and venture debt further solidifies India’s alternative investment landscape.

A Strategic Gateway for Global Growth

Strategically located in South Asia, India provides access to vast markets, benefiting from global supply chain shifts and growing trade participation. With strong fundamentals, a skilled workforce, pro-investment policies, and tech advancements, India is a key player in the global economy. High-growth markets, industrial expansion, or tech-driven investments, India is ready for business.

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