By all accounts, Indian investors don’t have much exposure to the stock market – and they must own more equity. Against the backdrop of a growing economy for the past 35 years, the stock market - as measured by the BSE-30 Index (Sensex) - has given returns that have outpaced inflation.
If the Indian economy continues to grow at a rate of 6.3% per annum using the old data series (which is the average annual growth rate achieved over the past 33 years across 10 governments) chances are the stock markets will again generate returns that are above the rate of inflation.
