'Mega trends' reshaping India, infra push opening new doors for long-term investors: Report

The Indian economy is being reshaped by powerful global trends called “mega forces” that are positioning the country as a top destination for global capital, according to a report by multinational investment company BlackRock. 

The mega forces, in the ‘2025 Midyear Global Outlook’ report, include demographic change, digital innovation, the energy transition, and the rewiring of global supply chains. “India offers one of the most compelling opportunities across emerging markets for investors looking to tap into mega forces,” the report notes. 

What makes India stand out is not just strong economic growth, but the structural transformation happening across its economy. Over the last decade, capital expenditure (capex) by Indian companies has risen by more than 40%, signalling greater investment and confidence in the economy, the report sa

The government’s consistent focus on building both physical and digital infrastructure—from highways and logistics corridors to digital ID (Aadhaar), payments systems, and platforms such as the Open Network for Digital Commerce, is driving formalisation and expanding access across sectors. These initiatives are creating new business models and improving productivity, the report states.

India’s equity markets are also maturing, with better governance, wider participation, and growing investor interest. The MSCI India index is currently trading at a forward earnings multiple of 22.5, slightly above its 10-year average. But the report argues that “valuations are not as stretched as multiples imply,” and that India’s long-term growth outlook supports this premium.

Looking ahead, the report says infrastructure will be a key theme. While public sector spending has historically led large-scale projects, private capital is now expected to play a bigger role, opening up new investment opportunities in areas such as green energy and logistics.

Despite global uncertainties, the report remains optimistic: “We advocate for above-benchmark allocations to Indian equities within strategic portfolios with investment horizons of five years.” India's transformation is still unfolding, and investors willing to stay the course may be well rewarded.