India spent $14 trillion on investments since independence, more than half of it in last 10 years: Report

India’s economic growth story has seen a significant increase in investment spending, with more than half of the US$14 trillion invested since independence being spent in the last decade alone, according to a report by Motilal Oswal.

The report notes that US$8 trillion was injected into the economy over the past 10 years, underscoring the country’s rapid expansion and modernization.

“The country has spent US$14 trillion on investment since independence, including US$8 trillion in the last decade alone,” the report said.

The report also said that this unprecedented pace is expected to continue, with projections indicating that India will invest an additional US$8 trillion over the next five years.

It also said that the investment-to-GDP ratio, which had been stable since 2011, is now seeing improvement. This revival is attributed to post-Covid recovery measures and increased government spending on infrastructure and developmental projects.

The increasing size of India’s annual investment reflects a shift towards sustained economic growth and increased global competitiveness.

“Investment to GDP ratio, which was low since 2011, is now recovering due to post-Covid recovery efforts and increased government expenditure,” it said.

The report also highlights the resilience of India’s stock markets over the last three decades. It said that despite facing interim decline, the market ended with positive returns in 26 out of 33 years. Temporary declines of 10–20 percent have become an almost annual occurrence, but long-term trends show steady growth.

“Almost every year a temporary discount of 10-20 per cent is given,” it said.

Although bear markets may seem challenging in the moment, they often turn out to be minor setbacks later on. The report cautions investors against panic selling during a recession, and emphasizes the importance of maintaining a long-term perspective to take advantage of market corrections.

India’s strong investment momentum, coupled with its resilient stock market, paints a promising picture for the country’s economic future. As the investment base continues to expand, India is poised to emerge as a major player in the global economy.