Bloomberg: $5 Trillion Equity Market in India
With the caveat that most long-term forecasts end up way off the mark, here’s a summary of a recent Bloomberg article - $5 Trillion Equity Market Is in India’s Reach:
If India can make a successful beginning with the proposed modernization of its pension industry, the market value of domestic stocks may well exceed $5 trillion in 2020, higher than that of Japan’s equities today.
Assuming that India’s $822 billion economy grows 8 percent a year with 5 percent inflation, a $5 trillion stock-market should be within India’s reach in slightly more than a decade; as much as a fifth of it may be associated with larger flows of retirement funds into equities.
The urban affluent should be the logical target in expanding the scope of the new pension plan, which aims to offer — to those who have the appetite for risk — a maximum of 50 percent exposure to stocks.
So much to look forward to!
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