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India's $10T Goal: Patient Capital Key
15 Feb
Summary
- India aims for $10 trillion GDP by 2035, requiring significant patient capital.
- Economic growth hinges on investments in gross fixed assets, estimated at $300-400 billion annually.
- Patient capital, from global funds and domestic savings, is crucial for long-term infrastructure development.
India's aspiration to reach a $10 trillion GDP by 2035 hinges on securing patient capital for economic transformation. Spark Capital's Y Rama Rao pointed to the Norwegian sovereign wealth fund's three-decade growth as an example of disciplined, long-term investing. He stressed that India must pursue asset creation, requiring an estimated $300-400 billion in annual investments for gross fixed capital formation to meet its ambitious target.
This necessary capital can be drawn from international sources like sovereign wealth and infrastructure funds, alongside India's substantial domestic savings, which exceed $1.6 trillion. Rama Rao advocated for a shift from a short-term focus on return on equity to building essential capital assets and infrastructure, which he argues is vital for national resilience during crises.
He referenced Prime Minister Modi's priorities: investing in digital and physical infrastructure, enhancing manufacturing capabilities, and poverty reduction. These pillars, coupled with patient capital, are essential for India to seize its economic opportunity and achieve a developed nation status.
