Equirus, a leading multi-family and private wealth company , expects economic growth of India to outpace G7 economies on the back of favourable macro fundamentals, policy-led capital expenditure, a resurgence in rural consumption and structural manufacturing shifts, said Equirus’ report “India to Outpace G7 – Can Domestic Resilience Outpace Global Volatility? Decoding Wealth, Asset Allocation, and Market Strategy in 2025”.

According to the report, global capital can no longer overlook India’s structural economic advantages, as the nation is poised to significantly outpace G7 economies in growth.

Mitesh Shah, CEO, Equirus Credence Family Office said, India is no longer the world’s fastest-growing economy just on paper — it is structurally better positioned than most G7 nations.

“The global macro regime is shifting. US growth has been revised down sharply while that of India is projected to contribute over 15 per cent to global GDP growth (2025-30),” he said.

The traditional 60:40 equity and bond allocation will not be enough to generate alpha. Higher GDP growth does not mean better equity earnings. China was a fastest growing economy in last decade but delivered near zero equity returns while the US’ economy which was struggling all the while was the second best in terms of equity returns, he said.

India is benefiting from structural trends such as rural FMCG demand outpacing urban (6 per cent vs 2.8 per cent), policy-led capex rising 17.4 per cent and ₹2.5 lakh crore liquidity infusion underway.

India is projected to contribute over 15 per cent of global incremental GDP (2025-30) much higher than Japan, Germany and the entire G7 combined.

Interestingly, the report forecasts Bangladesh contribution to global economy to surpass Japan (less than 1 per cent) while Germany will register 1.3 per cent growth, it said.

The monthly per capita expenditure gap between rural and urban households has narrowed from 84 per cent to 70 per cent over the last decade

In today’s volatile and fragmented global regime, strategic asset allocation is essential for capital preservation and alpha generation.

The report urges investors to adopt a more dynamic and forward-looking asset allocation approach across geographies, sectors, and growth cycles.

While Central and State capital expenditure is expected to grow 17 per cent, RBI has infused ₹2.5 lakh crore in liquidity through phased CRR cuts while GST revenues grew 13 per cent y-o-y in early 2025, signalling robust consumption.

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Published on June 19, 2025