India’s economic story is on the rise, says Capital Group

India is poised to rise among emerging markets in this decade, driven by remarkable expansion in direct and fixed asset investment, Capital Group said in a recent report. The country has had political stability over the last 10 years allowing economic development to be a top priority. "While political instability and market volatility may increase in advance of general elections next year, we believe that India is poised for a period of secular growth, fueled by significant expansion in direct and fixed asset investment," Capital Group said and added the growth parameters of India are pointing in the right direction with high Corporate confidence, expansion of the economy and technological advancement and innovation.

The report said that several reforms and programmes launched in the leadership of PM Modi like Aadhaar, a national Goods and Services Tax (GST), Unified Payments Interface (UPI) are helping boost consumer lending, replacing inefficient web of state taxes and facilitating electronic transactions and provide credit respectively as well as making the process more transpare. Production-linked incentive programs designed to elevate India's domestic manufacturing base are gaining traction too. PM Modi has delivered in terms of governance, infrastructure and economic programs. India is projected to become the world's third-largest economy behind the United States and China by 2027, according to the International Monetary Fund. It's currently the fifth largest, after Japan and Germany, as per Capital Group.

The lack of infrastructure has been a major impediment to unlocking India's true growth potential. Over the past five years, the government has pumped billions into building up of roads, railroads, airports and seaports. Capital Group has found that the construction of infrastructure as well as more affordable housing is finally happening. Manufacturing capacity is expanding for mobile phones, home appliances, computers and telecommunications equipment. PM Modi’s team has been aggressive in courting Japanese, Taiwanese and US companies to invest in new capacity.  Nine reasons why one of the World’s biggest money management group thinks India’s economic story is on the rise. Capital Group is a private firm that aims to improve people’s lives through successful investing and take control of their financial futures. It is one of the world's largest investment management organisations