**India’s Growth Story Captures Global Attention**

Featured & Cover India's Growth Story Captures Global Attention

Peeyush Mittal has been making the 185-mile journey from the Indian capital to Jaipur for over three decades. Despite infrastructure improvements, the trip always took six hours. Mittal, a portfolio manager at Matthews Asia, expressed his long-standing frustration: “For 30 years there’s been this promise of doing that journey in three hours. It has never been possible.” However, last year, he experienced a significant change. Driving at 75 miles per hour on a new expressway, he completed the journey in just half the time, leaving him astonished: “My jaw dropped when I first time got on that highway. I was like, ‘Wow, man, how is this even possible … in India?”

The quality of India’s new infrastructure is just one factor driving excitement among investors like Mittal, who manage funds focused on emerging markets. India’s development trajectory since 2014, under Prime Minister Narendra Modi’s leadership, has sparked optimism. Modi’s ambition to elevate India to a $5 trillion economy by 2025 has garnered attention globally.

Contrastingly, China faces economic challenges, including capital flight and stock market slumps, with trillions of dollars lost in market value. In contrast, India’s stock market is thriving, surpassing $4 trillion in value last year, with projections indicating it could double to $10 trillion by 2030.

Investors are eyeing India as a potential replacement for China in driving global growth. With China facing uncertainties, India’s prominence in international markets is on the rise. Aditya Suresh, head of India equity research at Macquarie Capital, notes the significant shift: “India’s weight in the MSCI emerging market index was about 7% a couple of years back. Do I think that 18% [in the MSCI index] is naturally gravitating more towards 25%? Yeah, that’s kind of clearly where our conversations are leading us to believe.”

As India approaches national elections, market observers anticipate that a continued mandate for Modi’s Bharatiya Janata Party could provide stability and further boost investor confidence. Mittal asserts, “If Modi is back with a majority and political stability is there, then I can certainly say with confidence that there’ll be a lot more investor interest in India on a more sustainable basis.”

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