New Delhi, Jun 23: Global capital can no longer overlook India's structural economic advantages, as the nation is poised to significantly outpace G7 economies in growth, according to a report released on Monday by wealth management firm Equirus.

The report identifies strong macro fundamentals, policy-led capital expenditure, a resurgence in rural consumption, and structural manufacturing shifts as key long-term drivers of India's growth in an uncertain global environment.

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

"The global macro regime is shifting. US growth has been revised down sharply, and while India is projected to contribute over 15 per cent to global GDP growth (2025-2030), traditional 60/40 portfolios are breaking down. In this new regime, strategic asset allocation across geographies and growth cycles isn’t optional -- it’s the alpha generator," he added.

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

India’s contribution to global GDP growth is significantly outpacing Japan (less than 1 per cent) and Germany (just over 1.3 per cent), the report points out.

The report highlights that rural consumption is driving the recovery in the Indian economy. FMCG demand in rural India grew 6 per cent, outstripping urban markets at 2.8 per cent. 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.

The report challenges the viability of the long-standing 60/40 portfolio strategy, historically seen as the gold standard for diversified investing.

In today’s volatile and fragmented global regime, strategic asset allocation is no longer optional -- it is essential for capital preservation and alpha generation, the report states.

The report urges investors to adopt a more dynamic and forward-looking asset allocation approach -- one that spans geographies, sectors, and growth cycles. With India emerging as a structural outperformer, the firm sees the country’s multi-engine growth -- driven by rural consumption, capex, and supply chain shifts -- as a compelling opportunity for both capital preservation and long-term alpha generation.

The report also highlights global factors reinforcing India’s advantage. The Dollar Index (DXY) has declined approximately 6 per cent from its 2025 peak, and crude oil remains stable at $70/barrel, easing India's import bill pressure.

It further states that while the 'China +1' narrative is evolving, concrete shifts are emerging. As multinational firms like Apple diversify away from China, shifting iPhone production to India benefits from cost efficiencies, lower attrition, and geopolitical alignment.

The report also sees a government policy-led capex boom boosting India’s growth. Central plus state capital expenditure is set to jump 17.4 per cent post-election, backed by a Rs 2.5 lakh crore liquidity infusion via phased CRR cuts, the report added.

(IANS)

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