India To Become $7 Trn Economy By 2030: JP Morgan

New Delhi, Oct 17 (KNN) India will grow into the world's third-largest economy by 2027, with its GDP more than doubling to USD 7 trillion by 2030, said JP Morgan's Managing Director of Asia Pacific Equity Research, James Sullivan.

“I would argue very strong long-term tactical drivers that make India a key overweight from a structural perspective from JPMorgan,” Sullivan said in an interview with CNBC-TV18.

Sullivan expects the manufacturing contribution to India's GDP to rise to nearly 25% from 17% and exports to more than double, to over a trillion dollars.

“From a longer-term perspective, we see massive changes in the overall structure of the Indian economy, which present clear opportunities for sector selection within what we think will be a strong overall market,” he said.

He pointed to the below-average earnings revision in China, a trend not seen since 2005, suggesting that China may be at an inflexion point in its economic trajectory. Such an inflexion point can often lead to new opportunities and challenges, making it a topic of keen interest for investors, he said.

“In China, we are very focused on specific sectors, if we can focus in line with government policy, if we can focus on deeply beaten down sectors that offer significant valuation support, then we see opportunity. So, it's a slightly different portfolio allocation strategy in each market,” he said.

There are indications that China is contemplating a boost in its 2023 budget deficit through a new stimulus initiative. This strategy involves the issuance of at least a trillion yuan, equivalent to USD 137 billion, in additional government debt, with the aim of channelling these funds into infrastructure projects. 

(KNN Bureau)