5 Reasons Why the Indian Stock Market will boom in the next decade

Background

Indian stock market has fallen less in 2022, as compared to other larger markets such as US. To compare — US Stock Index (Nasdaq 100) has fallen 30% in 2022, whereas Indian Stock Index (Nifty 50) has gained ~4% in 2022. Hence when markets recover, probably by the end of 2023, other markets such as US might outperform India in the short term, as these lagging markets have more catch up to do.

I believe that going forward, in the long term, Indian stock market returns, adjusted for currency difference, will be ahead of other emerging markets, and even some developed countries. Investors are constantly searching for long term market plays, which can compound their wealth over time. I believe India is one such place, and will remain so for the next decade or so. Below are 5 main reasons why.

Reason 1: Improving Infrastructure to aid Growth

Infrastructure is the foundation on which companies are built, and then generate profits. A country’s infrastructure can range from highways and railway network — which supports fast and affordable transportation of goods, to availability of new age technology infrastructure such as 5G and data warehousing capabilities.