India's Next Decade: From IT Services to Hard Asset Wealth Creation
India is shifting its focus from software and services to infrastructure, real estate, and renewable energy, positioning itself as a hub for global wealth creation over the next decade.
InfrastructureReal EstateRenewablesGlobal InvestorsEconomic GrowthReal Estate NewsSep 24, 2025
Infrastructure — The New Growth Driver
Jefferies projects that airports, ports, hospitals, homes, hotels, and green energy will surge as India pours trillions into building an infrastructure backbone for a $5 trillion economy. The 2025 budget earmarked over $125 billion in public infrastructure capex, with landmark investments in connectivity, logistics corridors, renewable parks, and high-speed rail. Companies are increasingly self-funding expansion, while real estate and construction are attracting record FDI and domestic capital.
Beyond Services — Hard Assets and Consumption
The signature outsourcing and IT story is giving way to an “India of hard assets”—where value creation centers on property, health, travel, and hospitality. Consumption plays are shifting from staples to homes and hotels, as new airports connect millions, expressways fuel urban growth, and modern hospitals attract both international and domestic patients.
India’s Global Supply Chain Moment
A key pillar is outbound M&A and the China-plus-one strategy, with Indian corporates acquiring foreign manufacturing for strategic diversification. Indian and Chinese firms may co-invest in Indian manufacturing hubs, especially in sectors like autos, rail, and defense. Renewables are seeing Indian plants set up in the US and Europe to access global markets.
Private Equity Shift and Investor Interest
Five years ago, global private equity funds allocated up to 40% of Asia money to China—now it’s under 10%, with India capturing most of the rerouting. Landmark deals (e.g., in pharma, healthcare, and fintech) show sharp momentum. India’s infrastructure, real estate, and consumption assets are now seen as the most fertile ground for global and institutional investors seeking scale and stability over the next decade.
Illustrative Table — India’s Investment Pivot
Old Growth Story (1995–2022) | New Growth Story (2025–2035) | Investor Asset Focus
--- | --- | ---
Software Outsourcing | Airports, Ports, Hospitals, Real Estate | Infra, REITs, Renewables
IT Services | Homes, Hotels, Logistics, Consumption | PE, M&A, FDI
SaaS and Tech | Energy Transition, Manufacturing | Global supply chains
A fundamental thesis is taking root: hard assets and infrastructure will underpin India’s next wave of wealth, making it the centerpiece of capital flows and supply chain realignment across Asia.
Frequently Asked Questions
What are the key sectors driving India's new growth story?
The key sectors driving India's new growth story include infrastructure, real estate, renewable energy, and logistics. These sectors are expected to create significant wealth over the next decade.
How is India's budget supporting infrastructure development?
India's 2025 budget has earmarked over $125 billion in public infrastructure capex, with major investments in connectivity, logistics corridors, renewable parks, and high-speed rail.
What is the role of outbound M&A in India's economic strategy?
Outbound M&A is a key pillar of India's economic strategy, with Indian corporates acquiring foreign manufacturing facilities for strategic diversification and to tap into global markets.
How has the focus of global private equity funds shifted in recent years?
Global private equity funds have shifted their focus from China to India, with India now capturing most of the rerouted capital. This shift is driven by the potential for scale and stability in India's infrastructure and real estate sectors.
What is the significance of hard assets in India's economic future?
Hard assets, such as infrastructure, real estate, and renewable energy, are significant in India's economic future as they are expected to underpin the next wave of wealth creation and attract substantial global investment.
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