India will become world's 3rd largest economy by 2027: JP Morgan's James Sullivan

Indian Economy: JPMorgan's managing director of Asia Pacific equity research, James Sullivan, said that India will become the world's third-largest economy by 2027. He further added that India's GDP will grow close to $7 trillion by 2030 which is more than double.

Sectoral Division

In an interview to CNBC-TV18 Sullivan said that the manufacturing contribution to India's GDP may rise to nearly 25% from 17%, and exports to more than double, to over a trillion dollars.

"From a longer-term perspective, we see massive changes in the overall structure of the Indian economy, which present clear opportunities for sector selection within what we think will be a strong overall market", Sullivan told CNBC-TV18.

Prediction on China

James Sullivan further suggested that China may be at an inflexion point in its economic trajectory and that the below-average earnings revision in the country is a trend that is not seen since 2005.

"Such an inflexion point can often lead to new opportunities and challenges, making it a topic of keen interest for investors," he said.

He also mentioned that the bank focusses on specific sectors and if it focusses in line with government policy and on deeply beaten down sectors that offer significant valuation support then there is some opportunity for China.

"In China, we are very focused on specific sectors, if we can focus in line with government policy, if we can focus on deeply beaten down sectors that offer significant valuation support, then we see opportunity. So, it's a slightly different portfolio allocation strategy in each market", Sullivan mentioned.

As per media reports, China is contemplating a boost in its 2023 budget deficit through a new stimulus initiative. The nation is planning on setting up a stock stabilisation fund to bolster investor confidence within the stock market.