India’s $7 Trillion Economy: The Crucial Role of Mid-Sized Firms
Worker operating a metal lathe in a manufacturing workshop.
Key Highlights
Renuka Ramnath stresses the need for stronger mid-sized companies and alternative assets to propel India towards a $7 trillion economy, addressing current GDP challenges.
India’s ambition to hit a $7 trillion economy from its current $4 trillion hinges on stronger mid-sized companies and strategic investments, according to Renuka Ramnath. The Multiples Alternate Asset Management CEO spoke at the India Investor Conference 2026, outlining critical changes needed.
Driving India’s Economic Leap
Ramnath emphasized that relying on consumption alone is insufficient for this growth. She highlighted key economic realities and challenges:
- Consumption currently makes up 61% of India’s GDP.
- Manufacturing contributes only 15-18% of GDP, needing significant expansion.
- Thousands of small and mid-sized companies struggle with limited profits, hindering their ability to invest in technology, talent, and expansion.
Alternative Assets: The Growth Catalyst
Alternative asset managers are crucial for bridging these gaps. They provide vital capital, enhance governance, and facilitate consolidation for businesses.Ramnath cited examples like PVR, an affordable housing finance platform, and Zydus’s animal health division, where such interventions have driven growth.
Boosting Domestic Investment
A critical next step involves greater participation from domestic capital. Ramnath advocated for supportive regulations and institutional encouragement.This would channel more Indian savings into alternative assets, fostering the necessary growth and transformation of these vital mid-sized enterprises.