India poised for multi-trillion-dollar boom as wealth creation soars to ₹148 lakh crore in 5 years

India’s biggest wealth creators added ₹148 lakh crore from 2020-2025, hitting an all-time high in wealth creation, the highest creation seen in the past 30 years, according to Motilal Oswal’s 30th annual wealth creation study.

The Motilal Oswal 30th Annual Wealth Creation Study (2020–2025) analyses the top 100 Wealth Creators of India Inc. Wealth Created is measured as the change in market capitalisation over five years, adjusted for mergers, demergers, buybacks, capital issuance and dividends. 

The study shows the wealth creation grew at 38% CAGR, sharply outperforming the BSE Sensex’s 21% CAGR, with Bharti Airtel emerging as the biggest wealth creator. “Bharti Airtel leads with ₹7.9 lakh crore in wealth created, followed by ICICI Bank and SBI. Strong operating momentum and consistent re-rating lifted large Financials and Telecom.”

Raamdeo Agrawal, Chairman, Motilal Oswal Financial Services, said, “India is entering its most powerful compounding era. As the economy moves from $4 trillion towards $16 trillion, the combination of rising financialisation, expanding equity ownership and stronger corporate profitability is creating a Multi-Trillion-Dollar opportunity for investors. Long-term wealth will be created by high-quality businesses that can compound for decades. The key is to select your compounders carefully and avoid the temptation to time the market.”

Among the fastest wealth creator companies, BSE tops the chart with a 124% return CAGR. “An equal investment in the top 10 fastest wealth creators grew to ₹24 crore from ₹1 crore, delivering 88% CAGR vs Nifty TRI’s 24%.”

Among the most consistent companies, state-owned Hindustan Aeronautics outperformed the Nifty TRI in all 5 years and delivered a 75% Total Return CAGR and emerged as the best all-round wealth creator, reflecting strength across scale, consistency and speed. 

Segment-wise, financials dominate wealth creation, emerging as the largest contributors to wealth creation, supported by robust profitability, credit growth and balance sheet strength. “Industrials, capital markets, technology and utilities follow. Defence, energy and utilities PSUs show sustained turnaround, with HAL, BEL and NTPC featuring prominently in the rankings.”

India: A multi-billion dollar (MTD) opportunity

The Motilal Oswal study, ‘India – The Multi-Trillion Dollar Opportunity - Compounding economy, compounding stocks’, reveals the world is getting wealthier, and India even faster, as its market cap has compounded at 17% over 20 years and now stands at 1.3x GDP. “As India’s economy gets more securitised and equity participation deepens, market cap can grow far ahead of GDP.”

The brokerage estimates suggest India’s GDP is set for another quadrupling, from $4 trillion to $16 trillion over the next 17 years, as the multi-trillion-dollar cycle will create many long-term compounders, businesses with moats, high RoE, sector tailwinds and disciplined capital allocation, it says. “Large caps are likely to outperform in the medium term, supported by stronger balance sheets and higher institutional ownership.”

Most powerful wealth creation phase for India

The Motilal Oswal study shows India will continue to record rapid financialisation, with record SIPs, rising demat accounts, and deeper retail participation. It highlights the wealth effect kicking in the country, with rising financial wealth now lifting consumption.

In its India multi-trillion dollar portfolio, the brokerage major has shortlisted companies, including InterGlobe Aviation, Eicher Motors, Hero MotoCorp, M&M, Maruti Suzuki, AU Small Finance Bank, HDFC Bank, ICICI Bank, SBI, Polecab India, Cummins India, L&T, Ware Energies, BSE, HDFC AMC, Motilal Oswal Fin, MCX, Nuwama Wealth, Prudent Corp, Blue Star, Eternal, Bajaj Finance, Cholamandalam Investment, Global Health, Narayana Hrudaya, ICICI Lombard, PB Fintech, Godrej Properties, Lodha Developers, and Bharti Airtel.