India's Economic Renaissance: A $12 Trillion Wealth Boost on the Horizon
India is poised to enter a decisive phase of economic expansion that could redefine long-term wealth creation, according to Motilal Oswal Financial Services’ (MoSL) 30th Wealth Creation Study. The study projects a sharp acceleration in the country’s economic and consumption landscape over the next 17 years, as reported by ANI.
The study draws a parallel with the last growth cycle, when India’s GDP expanded fourfold from $1 trillion in 2008 to $4 trillion in 2025. It suggests that a similar trajectory could take the economy to $16 trillion by 2042. Unlike the previous phase, which added $3 trillion in absolute GDP, the next leg is expected to add $12 trillion, signaling a much stronger wealth-effect that could significantly lift consumption, investment, and corporate profitability.
A major pillar of this expansion is expected to be the financial services ecosystem. Cumulative household savings are estimated at $47 trillion over the period. Banks, Non-Banking Financial Companies (NBFCs), insurers, Asset Management Companies (AMCs), wealth managers, capital market platforms, and other intermediaries are expected to play a central role in channeling these savings into productive financial assets. This shift will see households moving further towards formal wealth creation avenues.
Per capita income, currently around $2,600, is projected to quadruple to $10,400 by 2042, pushing millions of Indians into higher consumption brackets. The study indicates that this transition will strengthen discretionary categories including white goods, food-tech platforms, quick commerce, healthcare, travel, telecom, and allied services. This acceleration will shift spending from necessity-driven to lifestyle-driven consumption.
On the automotive front, MoSL highlights significant headroom for growth. Penetration levels of cars, SUVs, two-wheelers, and three-wheelers remain well below those of peer economies with similar income levels. As affordability improves and financing deepens, ownership ratios are expected to rise across cities and semi-urban markets.
Real estate is also set to be a key beneficiary, with strong demand expected for credible developers, particularly in the premium and luxury segments. Rising household wealth, better affordability, and a higher preference for quality housing are likely to sustain sectoral momentum.
Overall, the study notes that the next 17 years could mark a step-change in India’s economic and wealth trajectory. With expansion taking place on a much larger base, the impact of the wealth-effect is expected to be far deeper than previous cycles, creating long-term opportunities across financial services, consumption-led industries, automobiles, and real estate.
