India Economic Summit : At the fourth edition of Republic Media Network’s India Economic Summit , themed “Viksit Bharat,” Edelweiss Group Chairman and CEO Rashesh Shah offered insights on India’s economic path, emphasizing ambitious growth targets, the evolving investment culture, and the importance of job creation. Shah, a prominent voice in finance, explored the transformation of India’s economy and investment landscape, projecting a potential $25-30 trillion economy by 2047.

India’s Economic Growth and “Golden Age of Compounding”

“India is at a stage… I call it the golden age of compounding for India,” Shah said, emphasizing that the economy has been steadily growing over the last 30 years, doubling in size approximately every six years. As of now, India has reached a $4 trillion economy, and with continued growth, Shah projected it could hit $11-12 trillion by 2035 and potentially reach $25-30 trillion by 2047.

From Saving to Investing: A Cultural Shift

Shah noted that India is moving from a “country of savers to a country of investors,” which he sees as a crucial step for wealth creation on a national level. The growth of the mutual fund industry, capital markets, and insurance has spurred this shift, allowing Indians to invest rather than simply save. He added, “When you start investing that smartly and get return, the family income really starts galloping away… We are compounding at scale.”

Job Creation: A Necessary Objective of Market Growth

While acknowledging the financial market’s growth, Shah highlighted the need for data to track job creation within these sectors. He argued that regulators and agencies should require filings on job creation, noting that while the market is flourishing, its impact on employment needs clearer articulation.

“It also has to create jobs for the country at large… we need to articulate that,” he said, emphasizing that stock market success should coincide with job creation and capital formation for India to fully realize its economic potential.

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Targeting 10% Growth for India’s “Bullseye”

Shah envisions India reaching a 10% growth rate without economic overheating, seeing this as vital for raising per capita income from the current $3,000 to $8,000-10,000. He stated, “I think for all of us in India, the bullseye has to be, can we get to 10% growth… with our investment, our consumption, our savings.”

Expansion of Investment Products and Democratization of Capital

He pointed to the diversification in investment avenues, including REITs (Real Estate Investment Trusts), INVITs (Infrastructure Investment Trusts), and other financial products, which allow Indian investors to own shares in physical assets like office complexes and infrastructure.

“We are financializing a lot of assets,” Shah said, explaining how these products have expanded beyond traditional stocks, making investment opportunities more inclusive and accessible across India. He likened the spread of entrepreneurship from major cities to Tier 2 and Tier 3 regions to the rise of diverse sports talent in the country.

Call for Balanced Regulation

On policy and regulation, Shah urged for a balanced approach. He suggested a system of “regulate and deregulate,” ensuring that outdated regulations are phased out to allow new businesses and innovations to thrive. He noted, “The biggest victim of over-regulation… it creates entry barriers for new firms, stops innovation.”

Long-term Market Outlook: Growth Amidst Volatility

With over 35 years in the financial industry, Shah reflected on the exponential growth he’s witnessed in the Bombay Stock Exchange (BSE), which rose from 700 points in 1989 to approximately 80,000 today. He predicted continued long-term growth, though with inherent volatility: “In the long term, it will be up, but it will be highly volatile,” he remarked, adding that this fluctuation provides both opportunities for investors and a source of interest for the media.

Shah’s insights underscored a vision for India’s financial future, one in which economic growth, job creation, and investment opportunities are interwoven to achieve a thriving, self-sufficient India by 2047.