The World Bank expects the Indian economy to grow 6.6% by March 2024

India is one of the nations that are emerging as the biggest and most popular economies of the future. It has already made its way to a number of investors’ maps, and it is only getting started. The country is also being closely monitored as it attempts to tackle the $65 billion selloff at Gautam Adani’s eponymous infrastructure empire.

This comes after a major short-selling attack, and how it handles this situation may determine how quickly it can establish itself as a reliable investment location.

India is on the path to success

According to the World Bank, India is on its way toward great economic growth. The bank expects it to see a 6.6% increase in the following year, leading up to March 2024. Along the way, India is also likely to overtake China’s position as the most populous nation in the world.

Economists from Morgan Stanley have also given their predictions of the country’s growth, suggesting that its stock market will be the third-largest in the world before the end of this decade. All of this has already been known to high net-worth individuals, family offices, pension funds, and alike. These and similar entities have been moving their money to cities like Mumbai and New Delhi for months, seeking investment opportunities while the West collapses.

Ever since Narendra Modi became the country’s prime minister, the overseas ownership of Indian sales has been on a steady rise. In fact, it has tripled since 2014 levels, currently at $683 billion. Foreigners from Israel to Canada and beyond are seeking to own shares of the local firms, and by now, they have already purchased one-fifth of all available stocks.

After domestic investors picked up on the boost in interest, they stepped up and started investing at higher levels themselves, which led to a decrease in the foreigners’ share of the market.

The Adani controversy

Many local money managers have decided to stay away from Adani’s seven core listed firms, worried about the conglomerate’s tight ownership structure, high valuations, and heavy debt. Adani dismissed such allegations and those of stock manipulation and fraud. Even so, Adani Green Energy and Adani Total Gas shares lost around 40% over the past three trading sessions.

The controversy about Adani — who briefly became the world’s third richest man — may be a deterrent for those who passively track stock market indexes. They are already hesitant to enter expensive markets, and these allegations are more likely to keep them out than to encourage joining it.

Meanwhile, Shares of the Adani group firms lost around $65 billion since January 25th. This came after Hindenburg Research, a short-seller from the US, published research regarding the group. Ever since the Indian conglomerate has been trying to pacify investors with no success.