Quite an interesting infographic. If you look at it from a sector POV, it throws up some obvious outcomes, and some leading indicators.
The emergence of IT services and the waning presence of core sectors shows India's move towards a services-led economy.
The most glaring transformation, however, is the financialization of the Indian economy. From zero representation of Financial Services in 1986, to a majority in 2024 - demonstrates where the maximum value creation has occured in the last few decades.
At a macro level, this reflects the economic growth of the nation.
But financialization of the economy without corresponding growth in real sectors poses its own set of challenges in the long term.
- At a societal level, a widening gap between the haves and the have-nots
- At an economic level, a slower rate of employment generation compared to GDP growth
Add to that a consumption-led growth and we're staring at high import dependence and increaing levels of household debt. (Pretty much whats happening in the US today; but without the ability to print the global currency!)
Now, of course, its not all grim and the Indian economy, at the moment, is doing very well. Very, very well - if one were to compare. These are possible future scenarios, against which policy decisons are taken to steer the economy in the right direction.
The #MakeInIndia campign is one such effort. And if sustained, we could see increasing share of manufacturing firms in the midcap index, and eventually balance out FS and services in Sensex as well, in the decades to come.
Only 8 companies have constantly remained a part of Sensex since 1986, when it was first launched!🤯
Why do you think these companies survived the turmoil while others didn’t?
Let us know in the comments and follow Finshots for more!
Senior Account Manager at EXANTE – EXANTE
8mooh really...) today tie with cucumbers?))