Key Points

KKR, in its ‘2025 Mid-Year Global Macro Outlook,’ said India’s growth prospects and favourable market conditions make it an attractive opportunity for investors. “From a macro perspective, India’s relative insulation from global trade friction remains intact, supported by its predominantly domestic, consumer-driven economy,” the report stated.

“We continue to see India as one of the most compelling strategic allocations within emerging markets today,” it added.

The report, published by KKR's Global Macro & Asset Allocation team, emphasised India's unique position as a scalable opportunity amid a shift from benign globalisation to great power competition.

KKR also saw a significant potential in infrastructure and credit investments in India, as the private sector capitalises on these trends.

“As the global trade landscape recalibrates, India is well-positioned to increase its manufacturing share, particularly as oil prices soften and ‘China+1’ strategies become more entrenched. Cyclically, we are observing early signs of a rebound following a soft patch in 2024, driven by rural income recovery, robust services exports, and, importantly, supportive policy measures,” said the KKR report.

Production-linked incentives and eased FDI rules are central to government

efforts to attract broader capital inflows. The Reserve Bank of India’s rate cuts and the recent fiscal year budget, which injects meaningful stimulus for low- and middle-income households, further bolster this outlook.

“For investors, India also offers diversification benefits. Its equity market correlation with global indices has decreased — and the sheer scale of its economy is expected to unlock significant private sector opportunities over the next decade,” the report highlighted.

The report further stated that while we anticipate a modest depreciation of the rupee, this can be hedged, and the core investment thesis remains compelling: in a volatile global environment, India’s stability, ongoing reforms, and resilient consumer base create a differentiated and increasingly scalable opportunity.

—IANS

- IANS