Mumbai, October 2025 India is on the verge of an era of growth, as Rajat Rajgarhia, the Managing Director and CEO of the Motilal Oswal Financial Services (MOFSL) Institutional Equities says. Recently, in an interview, Rajgarhia forecasted that India will soon reach a structural inflection point, in which the sheer size of India will start to translate into sustained growth in all sectors within the next quarter-century.
He has stressed that India is prepared to move onto a wider revival phase after almost 18 months of market consolidation and subdued returns, with growth themes stretching far beyond some scores of pockets of strength.
The Most Important Sectors to monitor in the next growth cycle
Rajgarhia is of the opinion that a number of divisions are in readiness to spearhead the next wave of wealth creation in India:
- Banking & NBFCs: As more people become financially included, credit expands in underserved communities, and more people become financially included, financial institutions might be one of the greatest beneficiaries.
- Capital Markets & Wealth Platforms: With increased equity and mutual fund investment among Indians, middlemen, stock brokerage firms, and technology wealth platforms will be benefiting.
- Travel and Tourism : Consumer Spending: Consumption-based growth will be triggered by pent-up demand, increasing incomes and domestic tourism.
- Digital Platforms and Tech Ecosystems: Rajgarhia predicted that digital platforms would become the new engines of wealth – i.e. software, fintech, SaaS and platform models will be the areas of high growth.
He further emphasized that valuations of companies should be looked at with a future development perspective rather than the existing multiples.
Why Size Into Growth Makes Sense Now.
Rajgarhia is right in that he argues that India is turning into a structural advantage, based on a number of converging trends:
1. Massive domestic markets: Domestic markets are large with an almost 1.5 billion population and a middle class that is growing at a very high pace and has the potential to support large-scale industries.
2. Capital access & liquidity: As the capital markets become deeper, increased funds are channeled in the growth opportunities.
3. Technology / digitization: Digital low-cost platforms enable businesses to expand rapidly both geographically.
4. Policy tailwinds: Pro-investment reforms, infrastructure spending, and a push for manufacturing give further momentum.
The next 25 years as perceived by Rajgarhia is not about incremental growth but it is about India translating its structural size into sustainable competitive advantage.
What It Means for Investors
To equity investors the MOFSL outlook implies a strategic change:
- Prefer those businesses that are capable of growing fast and retaining operating leverage.
- Invest in industries whose secular cyclones are long-term and not short.
- Price firms on forward earnings growth as opposed to multiples.
- Look at new digital first disruptors and orthodox growth engines.
India will have a playbook of the Samvat 2082 as projected by Rajgarhia in which finance, consumption, and digital will dominate to create multi-decade opportunities in patient capital.
Keywords
India growth outlook
Rajat Rajgarhia MOFSL
Indian stock market future
Size into growth thesis
