India is likely to become $5 trillion economy by 2025, predicts Rashesh Shah, Founder and Chairman, Edelweiss Group. He was speaking at the Cafemutual Conference: Wealth Management 2016 (CCWM 2016) held yesterday in Mumbai.
Shah says, “Indian economy was at $1 trillion in 2007. After 60 years of independence, the country has added a trillion dollar in Indian economy. Currently, Indian GDP is worth $2 trillion. That means, in just 7 years, the Indian economy gets double. Assuming 30% savings rate, India has close to $600 billion which is much higher FIIs flows of close to $30 billion.”
In future, we have estimated that India will add $1 trillion in the next five years to the GDP, another $1 trillion dollar in three years after that and finally one more trillion dollar by 2025. After this, India has the potential to add $1 trillion every 18 months. By 2025, India will be the fourth country to cross $5 trillion economy after USA, China and Japan, said Shah.
“India will have savings of $1.5 trillion by 2025 which provides huge opportunity to the wealth managers,” observes Shah.
To tap this opportunity, wealth managers need to align the interests of all stakeholders, shah said. “Wealth managers should create a balance between idealism and pragmatism to grow business. Too much idealism may adversely affect your business. Also, high level of pragmatism may lead you nowhere. There should be a balance between these two perspectives.”
Shah also said that wealth managers are like doctors for their clients. Hence, the commissions wealth managers get should be close to what doctors get not more than this, he said.
