According to the 30th Annual Wealth Creation Study by Motilal Oswal Financial Services (MOFSL), India’s stock market and economy are entering a decades-long compounding cycle — a structural shift that could transform wealth, consumption, and growth prospects over the coming decades. The report finds that between 2020 and 2025, the top 100 Indian companies created an unprecedented ₹148 trillion in equity wealth — the highest five-year total in the study’s 30-year history. This wealth was driven by strong growth in corporate profits, rebound from pandemic lows and expanding equity participation.

MOFSL calls this a Multi-Trillion Dollar (MTD) era, where both the economy and capital markets will compound together. The study projects that India’s GDP could quadruple from about $4 trillion today to over $16 trillion by 2042–2047, supported by a sustained 9% dollar-term CAGR, rising household financial assets, and increasing financialisation. As equity ownership widens, the wealth effect — where rising asset values spur higher spending — could further reinforce economic growth.

The report also highlights broader trends: financial wealth and market capitalisation have grown steadily over decades, the market now ranks among the world’s largest, and high-quality companies capable of persistent compounding are poised to benefit most in this long-term cycle.

In essence, India may have moved beyond short-term rallies into a structural era of deep, long-term wealth formation and economic expansion — a powerful compounding phase that investors and policymakers may find both promising and transformative.