India’s strong economic fundamentals and growth momentum are catching the attention of global investors, according to a new report by wealth management firm Equirus. The report, released on Monday, suggests that India is set to outpace major G7 economies and become a key driver of global economic expansion over the next few years.

“India is no longer the world's fastest-growing economy just on paper; it is structurally better positioned than most G7 nations. That's a seismic shift,” said Mitesh Shah, CEO of Equirus Credence Family Office.

The report shows that while global markets face uncertainty, India is showing clear signs of long-term economic strength. Factors such as a steady rise in capital expenditure, recovery in rural demand, and a manufacturing push are fueling this momentum.

One key highlight from the report is the resurgence of rural consumption. Fast-moving consumer goods (FMCG) demand in rural areas grew 6%, compared to just 2.8% in urban markets. The income gap is also narrowing; the difference in monthly per capita spending between rural and urban households has dropped from 84% to 70% over the past decade.

In addition, India is experiencing a strong boost in infrastructure spending. Policy-led capital expenditure is projected to increase by 17.4%, supported by a massive ₹2.5 lakh crore liquidity injection through phased CRR (Cash Reserve Ratio) cuts.

The report estimates that between 2025 and 2030, India will contribute more than 15% to global GDP growth, far ahead of Japan (under 1%) and Germany (just over 1.3%).

Shah added, “The global macro regime is shifting. US growth has been revised down sharply, and while India is projected to contribute over 15 per cent to global GDP growth (2025-2030), traditional 60/40 portfolios are breaking down. In this new regime, strategic asset allocation across geographies and growth cycles isn't optional -- it's the alpha generator.”

The report questions the reliability of the traditional 60/40 portfolio model, which mixes 60% stocks and 40% bonds, that investors have long depended on. It suggests that this strategy may no longer be effective in today’s unpredictable markets.

Instead, Equirus urges investors to take a more flexible and forward-looking approach. The firm believes that India, with its mix of rural demand, infrastructure push, and global supply chain shifts, presents a strong opportunity for capital protection and long-term returns.

External factors are also working in India’s favor. The report points out that the Dollar Index has dropped by around 6% from its 2025 high, and crude oil prices have stayed steady at $70 per barrel, easing pressure on India’s import costs.

Another important trend is the shift in global manufacturing. As multinational giants like Apple reduce their dependence on China, India is emerging as a preferred alternative for production, offering cost savings, better worker retention, and stronger geopolitical ties.

Post-election, the combined capital spending by central and state governments is expected to rise significantly, further fueling the country’s growth. According to the report, this spending surge, backed by a ₹2.5 lakh crore liquidity infusion, will help sustain economic momentum in the coming years.

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