India to save over $50 Billion in equity by 2020

Mumbai: India's savings in shares and debentures are likely to touch $25 billion in 2015 and $54 billion in 2020 from $13 billion in 2008, according to a research study.

Nandan Chakraborty, Managing Director of Enam Securities Institutional Equity Research, India's pool of financial savings is expected to double to $273 billion in 2015 and $539 billion in 2020. The country's GDP is also expected to go up to $2.9 trillion in 2015 and $5.8 trillion in 2020.

The government's revenue is expected to rise up by $87 billion by 2015, following the implementation of Direct Taxes Code (DTC) and GST. DTC and GST, according to Chakraborty, are expected to add $35 billion and removal of other exemptions to add $29 billion to the government's revenue.

According to the report, the non-tax revenue of the government is estimated at $23 billion. On the other hand, the divestment will generate $9 billion in FY'11 and another $3 billion would be generated through divestment in subsequent years.

India's market cap will be at $2.6 trillion in 2015, making it the fifth largest in the world. In addition, India would be world's eighth largest and fastest-growing economy in 2015 with its GDP at $2.9-trillion, said the report.

The report further said that India is the fastest-growing consumer market in the world with the private consumption at $1.7 trillion. Indians buy 4.7 million cars per annum which is larger than that of Japan, the report adds.