India is poised to enter a decisive phase of economic expansion that could redefine long-term wealth creation, according to Motilal Oswal Financial Services’ 30th Wealth Creation Study, which projects a sharp acceleration in the country’s economic and consumption landscape over the next 17 years, ANI reported.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, and says 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, signalling what the brokerage terms 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, with cumulative household savings estimated at $47 trillion over the period. Banks, NBFCs, insurers, AMCs, wealth managers, capital market platforms and other intermediaries are expected to play a central role in channelling these savings into productive financial assets as households move 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 says this transition will strengthen discretionary categories including white goods, food-tech platforms, quick commerce, healthcare, travel, telecom and allied services, accelerating the shift from necessity spending to lifestyle-driven consumption.On automobiles, 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 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.
