India’s $20 Trillion Economy Goal by 2036: Equirus Reforms

Equirus Securities has released a comprehensive report, ‘India’s Road to a $20 Trillion Economy,’ detailing a 20-point reform agenda. This blueprint aims to propel India to a $20 trillion economy by 2036, necessitating a sustained nominal growth rate of approximately 18% in dollar terms.

The report highlights that India’s economy must expand roughly 5.5 times its current size to meet this ambitious goal. The services sector, which currently constitutes 54% of India’s GDP, is identified as the primary driver for this growth.

Strategic Reform Areas Unveiled

Equirus categorizes its 20 proposed reforms into five critical areas. These foundational pillars are designed to support multifaceted economic development.

The Real Economy.

Capital Markets.

Human Capital.

The Services Engine.

Liveability & Governance.

Transforming Infrastructure and State Assets

Among the key recommendations, Equirus suggests privatizing the Indian Railways and subsequently listing it publicly. This strategic move holds significant financial implications.

The railways are valued at an asset-backed ~3x revenue.

Public listing could generate approximately $500 billion.

It would attract substantial foreign exchange inflows, supporting the rupee.

An estimated ₹2.8 trillion annually could be freed up from the Union Budget.

Furthermore, the report proposes establishing an India Sovereign Fund, modeled after Singapore’s Temasek. This entity would consolidate all government equity in public-sector companies into a professionally managed holding structure.

Selling about 5% of this growing fund annually could raise an initial $13 billion.

This figure could potentially increase to $32 billion.

Funds would finance subsidies, bridge capital expenditure gaps, and make strategic investments without new taxes or additional debt.

Deepening Capital Markets and Tax Reforms

To enhance capital markets, Equirus advocates for more robust corporate bond markets. Achieving tax parity between bonds and equity is crucial for this expansion.

This parity could unlock an enormous capacity of about ₹54 trillion.

The report also points out that India uniquely levies two separate transaction taxes—Securities Transaction Tax (STT) and stamp duty—on the same cash equity trade. Eliminating this double taxation is a key recommendation.

Such a move would benefit 180 million demat account holders.

It would tighten market spreads.

It would remove a cost that could hinder India’s International Depository Receipt (IDR) ambition.

Other significant proposals include integrating fuel under the Goods and Services Tax (GST) and implementing mandatory state capital expenditure floors. These measures aim to streamline taxation and ensure consistent infrastructure investment across states.