• Corporate balance sheets: Indian corporates have significantly cleaned up their financials and are now funding project capital expenditure largely through free cash accruals rather than historical debt-to-equity borrowing ratios of 1.5:1 or 2:1.
• Macroeconomic trajectory: Drawing parallels to historical transformation cycles in Japan and China, India's ongoing reforms and growth momentum are expected to steadily drive down and stabilize inflation, interest rates, and the exchange rate over the long run.
• Infrastructure expansion: A virtuous investment cycle backed by self-financing revenue mechanisms has accelerated timely capacity additions across highways, ports, airports, and world-leading low-cost telecom and digital public infrastructure.
• Fintech disruption: Following the rapid shift seen in retail broking, asset management and insurance companies are poised to experience the next wave of disruption as tech-native startups bypass legacy distribution models to engage digitally savvy consumers directly.