India’s wealth creation hits 30-year peak in 2020–25; Rs 148 trillion added by top firms
New Delhi, Dec 11 – According to a report released Thursday, the Indian equity market generated the most wealth over the 2020‑2025 period in three decades, with the top 100 companies netting a staggering Rs 148 trillion. The surge was largely due to the quick recovery from the pandemic‑induced slump.
Financials still dominate as the biggest wealth‑generating sector, followed by Industrials, Capital Markets, Technology and Utilities. Public sector undertakings have made a strong comeback, especially in defence, energy and utilities. Both BSE and Hindustan Aeronautics stood out as the fastest, most consistent creators of wealth during the five‑year span, according to Motilal Oswal Financial Services Ltd (MOFSL). HAL was also recognized as a top all‑round wealth creator.
The study noted that the world is steadily growing richer, and India is no exception. Global financial assets have been compounding consistently, and India’s market cap has grown at an average of 17 % per year over the past two decades.
India is now the fourth‑largest equity market worldwide. “India is entering its most powerful compounding era. As the economy moves from $4 trillion toward $16 trillion, the combination of rising financialisation, expanding equity ownership and stronger corporate profitability is creating a multi‑trillion‑dollar opportunity for investors,” said Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services Ltd.
“Long‑term wealth will be built by high‑quality businesses that can compound over decades. The key is to choose your compounders carefully and resist the urge to time the market,” he added.
The report emphasised that there is no hard ceiling on financial wealth. Despite periodic shocks, both global and Indian equity markets continue to grow structural wealth over extended cycles.
India’s GDP quadrupled from $1 trillion to $4 trillion in 17 years, and the study projects another quadrupling over the next 17 years, opening a multi‑trillion‑dollar (MTD) opportunity across industries.
During this MTD era, the Financials sector (including Capital Market businesses) and Consumer Discretionary are poised for explosive growth as they reach scale and penetration tipping points. “The MTD era will showcase many compounding stocks, fueled by rising incomes, financialisation, formalisation, and strong corporate profit cycles. Large caps are likely to deliver better mid‑term performance,” the report highlighted.
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