NEW DELHI
India is set to gain as global markets move into a reflationary phase, according to a new report that highlights the country’s growing role in world economic growth.
The report by Equirus Wealth says India is expected to contribute more than 15 per cent of global incremental GDP growth between 2025 and 2030, making it one of the strongest engines of expansion worldwide.
It notes that global investors are slowly rethinking their heavy exposure to the United States driven by artificial intelligence stocks and are now looking to diversify across Asian markets.
Foreign institutional investors have pulled out nearly 18 billion dollars from Indian markets in 2025, leaving the country underrepresented in many global portfolios. This has created room for fresh inflows if sentiment toward emerging markets improves.
The report points out that nearly 75 per cent of the MSCI Emerging Markets index is focused on just four economies, China, India, South Korea, and Taiwan.
Within this group, India is expected to stand out due to policy-led growth, improving liquidity conditions, and early signs of a weaker US dollar.
Equirus Wealth believes India’s contribution to global growth during the next five years will be larger than the combined contribution of Japan and Germany.
The current reflation phase is described as different from earlier cycles, driven not by excess liquidity but by controlled inflation and policy support.
Experts say investors are now focusing on stable earnings and strong balance sheets.
The firm favours government bonds, sees gold as a safety asset, and views silver as a short-term trade.
