‘The world’s growth engine’: Nilesh Shah says India drives up to 10% of global GDP expansion

As Shah summed up, “India may still look small in size, but its incremental contribution to global prosperity is anything but.”

India may account for just 3.5% of the world’s GDP, but it’s driving close to a tenth of the planet’s economic expansion, a feat that underscores its growing influence on global markets, according to Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company (AMC).

Speaking at the Kotak International India Insight Summit in New York, as cited by The Indian Express, Shah said India’s economy is now the 'engine of the global growth train' and that its long-term market performance places it among the world’s most rewarding destinations for investors.

India’s rise as a growth engine

“India drives 8–10 percent of world growth, and on purchasing power parity (PPP) terms, our contribution to expansion nears 18 percent,” Shah said, as quoted by The Indian Express. “We are the engine of the global growth train in the days to come.”

Shah noted that India’s equity markets have delivered an impressive 13.7 percent annualised growth from 2020 to 2025, outpacing nearly all emerging markets. This strong run, he said, has cemented India’s reputation as a resilient, high-return market amid global uncertainty.

From 10th to 4th largest economy in a decade

Despite its per capita GDP of just $2,940, placing it 136th globally, India’s overall economy crossed $4 trillion this year, making it the fourth-largest in the world. That marks a leap of six spots in a decade, from 10th to 4th, driven by domestic consumption, services, and manufacturing expansion.

Shah also highlighted India’s fiscal prudence. “While India’s consolidated deficit hovers around 7 percent of GDP, it remains the only major economy to have reduced its debt-to-GDP ratio between the 2008 global financial crisis and the post-COVID era in 2025,” he said.

India’s open market advantage

Shah pushed back against criticism that India isn’t open enough to global investors. “We’re the only country where foreigners own the majority of our largest listed bank, asset management company, automobile company, FMCG company, telecom firm, and engineering company,” he pointed out.

He added that India’s openness to tech giants, Meta, X, Google, WhatsApp, Amazon, and others, contrasts sharply with China’s closed ecosystem. “India freely allows global platforms that China has blocked,” he said, arguing that this approach supports innovation and investment inflows.