India's Leap into Lunar Exploration and the Global Economy
India has achieved a significant milestone by becoming the first country to successfully land on the moon's south pole. Beyond the symbolic nature of this feat, it underscores India's shift towards technology-driven innovation, leveraging its large technical labor force. Furthermore, it could also mark India's expanding role in a multipolar world and its increasing prominence in global equity portfolios.
Though India is the presiding nation of the G20, the country steers its course through a tumultuous global environment marked by the Russia-Ukraine war and the lingering effects of the COVID-19 pandemic. While India has been a steadfast member of the Brazil, Russia, India, China and South Africa (BRICS) emerging economies, it now plays a pivotal role in bridging influential economic assemblies like the G7 and G20. IMF projections indicate that by 2027, India is poised to surpass stalwarts like Japan and Germany, becoming the world's third-largest economy.1
Investors have taken note of India's rise, spotlighting the country as a pivotal player in emerging-market equities. Driven by top-line growth and a widening market breadth — as gauged by the number of securities — India's stake in the MSCI Emerging Markets Index has soared to a high of 15%. The persistence of this trend may hinge upon India's domestic-consumption patterns and whether it continues as a manufacturing hub.
Expansion of Indian equity opportunity set
Expanding sales and margins offset the falling rupee over the last half-decade
1 International Monetary Fund, “World Economic Outlook (April 2023). ”State Bank of India “Ecowrap,” Sept. 3, 2022
Pallavi Nahata, “India As The World's Third Largest Economy? Here's How Long It Will Take.” BQ Prime, July 28, 2023.
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