The Splurge Spree Is Back!
"India's marvellous growth, its rapid rise, its leadership in the world today has demonstrated the most successful G20 we have ever seen," — US Ambassador to India Eric Garcetti speaking at the Indo-American Chamber of Commerce on 26 September
We live in exciting times, when India is literally reaching for the moon and mars and conquering the universe with its innate goodwill. For India now, every step needs to be measured, to ensure that we do not slip from a trajectory built assiduously over a decade. Every economic, political or even geopolitical leap has traditionally been saluted by the nation’s vibrant stock markets, as investors, foreign, domestic and retail, demonstrate their confidence in the fundamentals of the economy. This exuberance percolates through the bourses, where the share of retail or small investors have grown exponentially with the rise in disposable income of the salaried classes. A tremendous maturity in the financial markets while this suggests in a country where household savings have traditionally been ploughed into gold or landholdings, memories of the massive bull run and the stock market debacle of 1992, is bound to haunt many.
As BW Businessworld columnist Srinath Sridharan says in his essay on the stock market miasma that unfolds before us, “Market exuberance, when left unchecked, can lead to speculative bubbles that ultimately burst.” While many checks and regulations on the financial markets have come into being since 1992, like the market regulator, the Securities and Exchange Board of India, so have innovators like the financial market influencers. The magical mirage that the stock markets are, is a special package in this issue. As Sridharan writes, “India’s financial landscape is experiencing a remarkable transformation, with its market capitalisation currently standing at a staggering $3.3 trillion, securing its place as the fifth most valued market on the global stage.” While a nearly $330 billion rise in market capitalisation in 2023, “is a testament to India’s economic prowess and investor confidence,” caution and a deep understanding of the forces at play are necessary now as ever before.
Meanwhile, the experiential economy, which took off with the revenge spending of quarantined Indians post pandemic, got a new lease of life with the G20 summit. Travel, tourism, media and entertainment are poised to contribute significantly to the national exchequer and emerge as major employment generators in the days ahead. Outlook 2021-2025 of the PwC predicts that global spending on entertainment and media alone will rebound to $2.4 trillion by 2025. India will have its slice of that giant pie. Do read our cover feature on a nation in a mood to splurge and the magic it is about to work on the Indian economy.
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