Is India Set to Surpass G7 Economies?

New Delhi, June 23 (NationPress) The global investment landscape can no longer ignore India's inherent economic strengths, as recent findings indicate that the country is on track to significantly outpace G7 nations in terms of economic growth, according to a report published by wealth management firm Equirus.

The report attributes this growth to robust macroeconomic fundamentals, government-driven capital expenditure, an uptick in rural consumption, and shifts in structural manufacturing, all of which serve as key long-term growth drivers for India amidst a turbulent global economic climate.

“India is now not just the fastest-growing economy on paper; it is strategically positioned to outperform most G7 countries. This represents a monumental shift,” remarked Mitesh Shah, CEO of Equirus Credence Family Office.

“The global economic landscape is changing. With the US growth outlook sharply downgraded, India is expected to account for over 15 percent of global GDP growth from 2025 to 2030. This makes traditional 60/40 investment strategies less effective. Adapting asset allocation across different regions and growth cycles is now critical for generating alpha,” he added.

Key trends are benefiting India: rural demand for FMCG is outpacing urban demand (6 percent vs 2.8 percent), policy-driven capital expenditure is soaring at 17.4 percent, and a liquidity infusion of Rs 2.5 lakh crore is currently in progress, according to the report.

India's contribution to global GDP growth significantly surpasses that of Japan (less than 1 percent) and Germany (approximately 1.3 percent), the report notes.

The report emphasizes that rural consumption is a primary factor in the Indian economic recovery. FMCG demand in rural areas surged by 6 percent, outstripping urban growth at 2.8 percent. Moreover, the monthly per capita spending gap between rural and urban households has decreased from 84 percent to 70 percent over the last ten years.

Additionally, the report questions the effectiveness of the historical 60/40 portfolio strategy, long considered the gold standard for diversified investment.

In a current climate characterized by volatility and fragmentation, strategic asset allocation is essential—not optional—for preserving capital and generating alpha, the report asserts.

Investors are encouraged to adopt a more proactive and future-focused asset allocation strategy that encompasses various geographies, sectors, and growth cycles. With India emerging as a structural outperformer, the firm identifies the country’s multi-faceted growth—driven by rural demand, capital expenditure, and supply chain transformations—as a remarkable opportunity for both capital preservation and long-term alpha generation.

The report also points out global factors that enhance India's advantages. The Dollar Index (DXY) has decreased by roughly 6 percent from its peak in 2025, while crude oil prices have stabilized around $70 per barrel, alleviating pressure on India's import expenses.

Furthermore, the evolving 'China +1' strategy is leading to tangible changes. Multinational corporations like Apple are diversifying their operations away from China, with iPhone production shifting to India, benefiting from cost efficiencies, lower turnover rates, and geopolitical alignment.

Finally, the report predicts a government-led capital expenditure boom that will further bolster India's growth trajectory. Central and state capital expenditures are expected to rise by 17.4 percent post-election, supported by a liquidity infusion of Rs 2.5 lakh crore through phased CRR reductions.