Will India Gain from the Global Reflationary Phase?
Synopsis
India is set to benefit from the global reflationary phase, projected to contribute over 15% of global incremental GDP growth by 2030. As international investors shift focus, India could become a key player in emerging markets, supported by favorable policies and economic conditions.
Key Takeaways
India is expected to contribute over 15% to global GDP growth between 2025-2030 .
Foreign institutional investor outflows have created opportunities for selective inflows.
India's growth is supported by policy-led initiatives and macro stability.
Gold remains a reliable long-term portfolio hedge.
Silver is viewed as a high-volatility tactical investment.
New Delhi, Jan 16 (NationPress) As global markets shift into a reflationary phase, India stands to gain significantly, with projections indicating that the nation could account for over 15 percent of the global incremental GDP growth from 2025 to 2030, according to a report released on Friday.
The analysis by Equirus Wealth emphasized that there remains ample room for India’s growth as international investors reconsider their concentrated investments in the US AI sector and seek out diversification opportunities in Asia.
It was noted that foreign institutional investor (FII) outflows nearing $18 billion in 2025 have caused India to be underrepresented in many investment portfolios, thus creating potential for selective inflows should the sentiment towards emerging markets improve.
Approximately 75 percent of the MSCI Emerging Markets index is dominated by four countries: China, India, Korea, and Taiwan.
India is anticipated to be a major beneficiary among emerging markets, bolstered by policy-driven growth, improved liquidity conditions, and early indicators of a weakening US dollar.
The country is expected to play a significant role in global incremental GDP growth from 2025-2030, outpacing the combined contributions from Japan and Germany, as highlighted in the report.
This reflation phase is distinct from previous cycles, characterized by structural disinflation and targeted policy measures that prioritize earnings durability and balance-sheet strength as key factors for returns, the report elaborated.
“While we are transitioning into a reflationary phase, this cycle is markedly different from earlier risk-on periods. It is not merely about excess liquidity but rather about policy-led growth support in a low-inflation environment. In such a landscape, asset allocation must be more selective, and India stands to gain from its combination of robust real growth and macroeconomic stability,” remarked Mitesh Shah, CEO of Equirus Family Office.
The wealth management firm favors the 4-7 year government bond segment, especially state development loans, noting that the 10-year yield remains around 6.60 percent.
Gold continues to be viewed as a long-term portfolio hedge, backed by central bank acquisitions, geopolitical uncertainties, and diminishing confidence in fiat currencies, while silver is perceived as a tactical, high-volatility investment, according to the report.
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Point of View
It is clear that India is strategically positioned to leverage the ongoing reflationary phase. The potential for growth and increased investment can significantly enhance India's role in the global market. As a responsible news organization, we remain committed to providing comprehensive analysis on such developments.
NationPress
24 Jul 2026
Frequently Asked Questions
What is the significance of India's projected GDP growth?
India's projected contribution of over 15% to global incremental GDP growth between 2025 and 2030 indicates its rising economic influence and potential as a key player in global markets.
How does the reflationary phase affect India?
The reflationary phase opens opportunities for India to attract foreign investments and diversify its economic base, particularly as global investors reassess their strategies.
What are the main drivers of India's economic growth?
India's economic growth is supported by policy-driven initiatives, easing liquidity conditions, and a favorable macroeconomic environment, along with early signs of a weakening US dollar.
